BNN Bloomberg Video: Christian Ulbrich sees real estate prices stabilizing globally

The Conversation: A Deep Dive into the Real Estate Sector

In a recent segment on BNN Bloomberg’s Trading Day, Amber Kanwar engaged in an insightful conversation with Christian Ulbrich, Global CEO of Jones Lang LaSalle (JLL), about the current state of the real estate market, the impact of potential rate cuts, and the evolving trends in the sector. The discussion provided a comprehensive overview of his firm’s operations, the challenges and opportunities in the real estate market, and how various economic factors are shaping the industry. Comments made about the commercial real estate markets are summarized below. Observations are generally national in scope, and thus may apply little, if at all, to Miami area commercial property markets.

Capital Markets Outlook and the Impact of Rate Cuts

The conversation touched on the potential impact of the anticipated rate cuts by the Federal Reserve. Ulbrich noted that lower refinancing costs following rate cuts could provide a boost to the real estate market, particularly in capital markets. This could potentially lead to increased activity in transactions, especially in asset classes that are already showing signs of improvement.

Investors are keenly watching the capital markets, and the conversation delved into the outlook for financing and transactions, particularly in the commercial real estate sector. Ulbrich expressed optimism, suggesting that the market may have reached its trough in terms of transaction volumes. He indicated that certain asset classes are beginning to see an uptick in activity, and with potential rate cuts on the horizon, there could be a significant boost to the capital markets.

However, the office sector remains a point of concern, having been one of the hardest-hit segments of the real estate market. Despite the challenges, Ulbrich pointed out that there is still demand for prime office buildings, particularly those that are green-certified. On the other hand, older office buildings are attracting interest from private equity investors who see opportunities for value acquisition, although there remains a gap between seller and buyer expectations.

Challenges of Converting Office Space to Residential

The discussion also touched on the idea of converting underutilized office spaces into residential properties, a concept that has gained traction in light of housing shortages in urban areas. However, Ulbrich was quick to point out the significant challenges associated with such conversions. The structural differences between office and residential buildings, along with regulatory hurdles, make this a costly and complex endeavor. While the idea is appealing, particularly in cities like those in Canada facing housing crises, it is not a straightforward solution.

Conclusion

The conversation between BNN Bloomberg’s Amber Kanwar and JLL’s Christian Ulbrich provided valuable insights into the current state of the real estate market and the factors influencing it. He also discussed topics related to firm, noting how diverse operations and strategic focus on outsourcing services have positioned the company well in a volatile market. The potential rate cuts by the Federal Reserve could bring further opportunities, particularly in capital markets, although challenges remain, especially in the office property sector. The discussion also highlighted the complexities involved in converting office spaces to residential properties, underscoring the need for innovative solutions to address housing shortages.

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August 28, 2024

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August 21, 2024

Video: MSCI Real Assets Chief Economist Jim Costello Discusses U.S. Commercial Real Estate Distress Tracker; Updates, Forecast, & Strategies

The Conversation: Understanding the Current Landscape of Commercial Real Estate Distress; Insights from America’s Commercial Real Estate Show

The commercial real estate market has been under the microscope lately, especially with the specter of distress looming large across various sectors. This topic took center stage in a recent episode of America’s Commercial Real Estate Show featuring Jim Costello, Chief Economist at MSCI Real Assets. The discussion provided critical insights into the state of distressed assets in the commercial real estate sector, exploring the nuances and differences from past downturns, particularly the financial crisis of 2008.

Note that this discussion is national in scope. Miami, at least so far, has seen few signs of stress in commercial real estate that are being experienced in other markets. Thus, many aspects of this conversation don’t apply much, if at all, to the local South Florida markets.

A Different Kind of Downturn

One of the key takeaways from the conversation was the contrast between the current market distress and what was observed during the 2008 financial crisis. Costello emphasized that while distress levels are rising, the pace and nature of this increase are different. Unlike the previous crisis, which saw nearly 20% of the market in distress within a couple of years, today’s market distress sits at a modest 2.5% of total sales. This discrepancy is attributed to the fundamentally different drivers behind the distress.

During the financial crisis, the distress was largely due to overleveraged assets that needed refinancing. However, today’s distress is more structural, driven by changes in demand, especially in sectors like office space. The shift towards remote work and the subsequent reduction in demand for large office spaces have left many buildings vacant, with no clear path to recovery. This kind of “fundamental distress,” as Costello describes it, is harder to address because it isn’t just about restructuring debt; it’s about reimagining the use of these properties.

The Geographic and Sectoral Breakdown

Geographically, the distress is concentrated in large, expensive coastal markets such as Manhattan, San Francisco, Los Angeles, and Chicago. These areas have been hit hardest by the shift to remote work, leading to a significant reduction in demand for office space. As a result, these markets are seeing the highest levels of distressed assets, particularly in the office sector.

The office sector, especially in central business districts (CBDs), is experiencing the most significant price corrections. Costello noted that while prices have dropped sharply, particularly for CBD offices in major coastal cities, the rate of decline has started to moderate. Despite this, the future remains uncertain, with much depending on how demand for office space evolves in these markets.

Liquidity and the Role of Lenders

Another critical aspect discussed was the role of liquidity in the current market. Unlike the financial crisis, where liquidity was scarce, there is still considerable “dry powder” available today, meaning that investors have capital ready to deploy. However, the challenge lies in finding opportunities that offer a good return, given the changes in market fundamentals.

Costello also highlighted that the type of lender involved can significantly impact how distress is handled. For instance, Commercial Mortgage-Backed Securities (CMBS) lenders, with their more rigid structures, are seeing higher levels of distress compared to local banks, which might have more flexibility in working with borrowers. The “vintage” of loans—when they were issued—also plays a crucial role, with loans from 2022 being particularly problematic due to their origination at peak market conditions with record-low interest rates.

Looking Ahead: A Localized Recovery?

The conversation concluded with a discussion on the potential paths forward. Costello suggested that unlike the last downturn, which saw large institutional players swoop in to capitalize on distressed assets, this recovery might be more localized. Smaller, local investors who understand the intricacies of their markets and can navigate the complexities of local zoning and permitting processes may be better positioned to capitalize on the current distress.

For lenders, this period presents an opportunity to build strong relationships with borrowers and to be selective about where to extend new loans, focusing on assets with solid fundamentals that are less likely to experience severe distress.

Conclusion

The commercial real estate market is facing a unique set of challenges, with distress levels rising but not mirroring the severity of the 2008 financial crisis. As the market continues to navigate these turbulent waters, understanding the fundamental shifts in demand and the role of liquidity and lender behavior will be crucial. Local investors and lenders with deep market knowledge may find opportunities where others see only risk, paving the way for a more nuanced and localized recovery.

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Economy
August 21, 2024

Miami Commercial Real Estate News August 15, 2024: Downtown Hotel Lost in UCC Auction; Trump National Doral seeks OK for 1,500 Condos; 316-Unit Public Housing Planned Near West Little River; More…

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Bridge Industrial is beginning a new project for a two-industrial building development in Miami, Florida. The privately owned real estate firm will start by first demolishing the former headquarters of logistics company Ryder System at 11690 Northwest 105th Street. That will make room for the new site on 16.8 acres, called Bridge Point Flagler Station. It will feature two industrial LEED…

Loews getting $305M refi for oceanfront Miami Beach resort

Loews Corporation is getting a $305 million refinancing of the loan backing its oceanfront Miami Beach resort. The financing is for the 5-acre, 790-key hotel at 1601 Collins Avenue in Miami Beach. Wells Fargo, National Association and JPMorgan Chase Bank are originating the loan, according to Fitch Ratings. It’s expected to close on Sept. 10. A spokesperson for Loews did not respond…

South Florida submarkets see rent declines, amid hefty new apartment supply

Across South Florida, some municipalities are experiencing a drop in apartment rents, marking a sharp turnaround from the tri-county region’s record rate hikes of recent years, a new report shows. Although this comes as bad news for landlords and a welcome reprieve for cost-burdened tenants, the rent declines in some areas may not be indicative of a long-term region-wide trend…

Naftali scores $35M loan for planned Miami Worldcenter high-rise

Naftali Group secured a $35 million pre-development loan for its mixed-use condo and rental tower at Miami Worldcenter. The New York-based developer obtained the financing from BHI, the U.S. arm of Israel-based Bank Hapoalim, according to a press release. The loan is for the planned 70-story high-rise at 1016 Northeast Second Avenue in downtown Miami. Naftali’s…

Doral Continues To Grow And Improve Its Reputation

“Doral continues to grow and improve its reputation.” This was stated by the Economic Developer of the city of Doral, Manuel Pila, after reviewing the economic analysis of Doral recently presented by Florida International University (FIU), which shows that Doral has an excellent reputation as a safe, modern, and efficient city for business. “The economic momentum…”

Citigroup Center Signs 46,000 SF of Lease Agreements

Citigroup Center is keeping and welcoming a series of tenants to its building thanks to the landlord striking roughly 46,000 square feet of lease agreements. The 34-story 810,000 square feet tower has kept four existing companies in addition to bringing in three new ones. The largest occupancy came from a new tenant, classified as a “large full service law firm,” which signed a lease…

Superior Manor Apartments Phase II Completes Construction In Liberty City

ANF has completed construction on the second phase of Superior Manor Apartments, a 76-unit affordable housing development in Miami’s Liberty City neighborhood. This project was developed by New Urban Development, the real estate affiliate of the Urban League of Greater Miami. Superior Manor Apartments Phase II provides affordable housing for residents earning…

Luxury South Beach Hotel Owner Proposes 561 Apartments In North Miami

A parcel in North Miami that has been vacant for more than 15 years could become the site of a 561-unit multifamily development. The development on the 4-acre site at 11400 Biscayne Blvd. would rise up to 15 stories and include 20K SF of ground-floor commercial space and a 723-car garage. Around 84 of the apartments would be designated as workforce housing, according…

Shvo Lays Off Miami Staff As Hurdles Mount For Ambitious Projects

Michael Shvo’s eponymous development firm is scaling back operations in South Florida despite having two projects in the early stages of construction. Shvo is down to four full-time office staff in South Florida after several employees were laid off last week, Bisnow has learned. The terminations — announced at a staff meeting on Wednesday, multiple sources said — were the latest…

Miami private credit firm raises over $670M for commercial real estate loan fund

A Miami-based private credit firm that specializes in commercial real estate lending raised $670 million for its latest fund. BridgeInvest announced Aug. 12 that it closed its fourth vintage specialty credit fund that will provide collateral-backed financing to existing properties or ones that are being renovated or repurposed ranging from $20 million to $150 million. The fund will target…

Heightened demand? MHG, Miami investor buy South Florida hotels

A Miami-based investment firm and a Midwest hospitality company… The deals come at a dubious time for South Florida’s hospitality market, as hotel investment sales… have faced financial woes. In the bigger deal, Brickell-based entity Habitus SPV Miami Airport BB1 bought the six-story, 110-key hotel at 5125 Northwest 36th Street in Miami Springs, near Miami International Airport…

Miami-Dade’s aviation department moving to new digs after $26M purchase of office building near MIA

Miami-Dade County paid $26.3 million for an office building for its aviation department. The county bought the six-story, 112,500-square-foot building at 7200 Northwest 19th Street in an unincorporated area of the county, north of Miami International Airport, from Walton Street Capital, according to records and real estate database Vizzda. Completed in 1982, the building…

CGI Merchant loses downtown Miami Gabriel hotel in UCC auction

CGI Merchant Group lost its downtown Miami hotel at 1100 Biscayne Boulevard in a UCC auction, marking the second time this week the firm parted with one of its properties due to debt woes. Coconut Grove-based CGI Merchant, led by founder and CEO Raoul Thomas, has been fighting foreclosure filings by lenders on three of its biggest hotels this year. Issues partly stem from elevated interest rates…

“A lot of square footage”: Six office buildings are on tap in Miami Beach. Will all get leased?

As South Florida became a magnet for out-of-state companies in the past four years, Miami Beach emerged as a budding office market. The city landed major leases at record rents during the influx of financial firms, family offices, hedge funds and other businesses. Developers seized on the boom, with plans for new Miami Beach projects. In all, six buildings are on tap…

Daniel Motha, Rishi Kapoor’s former right hand, fights SEC subpoena for emails

Daniel Motha played an integral role helping Rishi Kapoor establish Location Ventures. Now, Motha is fighting the U.S. Securities & Exchange Commission’s efforts to pry company information out of him. Motha, a former CFO for defunct Coral Gables-based Location Ventures, wants a Miami federal judge to deny a subpoena filed by the SEC seeking his tax returns, emails…

Lease roundup: Downtown Miami’s Citigroup Center, Hollo family’s 1101 Brickell land tenants

Law firm Fowler White Burnett will move its office to downtown Miami from the city’s Brickell neighborhood. The firm is one of two tenants that leased at the 34-story Citigroup Center at 201 South Biscayne Boulevard. Citigroup Center’s ownership team announced that a law firm leased 18,800 square feet at the tower and seafood company Pescanova leased 2,500 square feet.

Multiplan launches sales for oceanfront Surfside condos

Multiplan Real Estate Asset Management is launching sales of a planned boutique oceanfront condo building in Surfside, seven months after buying the site. The 12-story building, dubbed Ocean House, at 9317 Collins Avenue, will have 25 units, according to a press release. Prices start at $5 million. Multiplan CEO Marcelo Kingston said the firm plans to price the project’s penthouse…

13th Floor lands $83M loan to build 398-unit Hallandale Beach complex, amid record South Florida apartment construction

13th Floor Investments landed an $83 million construction loan for a planned 398-unit apartment complex in Hallandale Beach. The deal comes as South Florida is experiencing a continued flow of financing, despite elevated interest rates, and a record multifamily construction popeline. 13th Floor, led by managing partner Arnaud Karsenti, is developing the five-story…

Developer lands $85M construction loan for Hallandale Beach condo tower, as South Florida financing defies nationwide slump

Developer Giuseppe Iadisernia scored an $85 million construction loan for a 250-unit Hallandale Beach condo tower. The deal comes as South Florida construction lending continues to flow, especially for condo projects, despite elevated interest rates and economic uncertainty. Iadisernia scored the financing for the 25-story West tower, which is already under construction…

‘The Horizon of Oakland Park’ Gets Site Plan Approval for Broward County

Two developers have secured approval from Oakland Park city officials regarding a mixed-use venture in Broward County. The Horizon of Oakland Park will offer 331 apartments and retail space in two mid-rise buildings. The South Florida Business Journal reports that 10 percent of the homes (averaging to about 33) would be reserved as workforce housing. Communal amenities…

Billionaire Bill Malhotra plans 220-room hotel in Pompano Beach

Claridge Homes, a Canadian real estate development company led by billionaire Bill Malhotra, plans to build a 15-story, 220-room Courtyard by Marriott hotel near the oceanfront in Pompano Beach. Ottawa-based Claridge last year paid $4.5 million to acquire the development site at 101 South Ocean Boulevard, now the site of a vacant two-story office building…

Pier Sixty-Six in Fort Lauderdale Nears Completion, Announces Pioneering Spa Concept

Pier Sixty-Six is nearing completion and is on track for a Fall 2024 opening. Located on 32 waterfront acres along the Intracoastal Waterway in Fort Lauderdale, the redevelopment by Tavistock Development Company includes a world-class resort with 325 guestrooms and suites, 12 dining destinations, 40,000 square feet of event space, and62 condominiums.

Developer Seeks Funding for ‘the Villages at East Ocean’ at 405 E. Ocean Avenue in Boynton Beach

In 2017, Edgewater Capital Investments secured approval for the Villages at East Ocean, a mixed-use complex in Boynton Beach. Now, seven years later, the Miami-based firm is seeking $12.5 million in city incentives to move the project forward. Developers originally secured approval for an eight-story building with 371 apartments and 15,757 square feet of retail. Current plans…

ALINA 210 Receives Early TCO At 200 SE Mizner Boulevard in Downtown Boca Raton

El-Ad National Properties, a South Florida-based subsidiary of the Elad Group, has announced that ALINA 210, part of the second phase of the ALINA Residences in downtown Boca Raton, received its temporary certificate of occupancy (TCO) ahead of schedule on July 26, 2024. The nine-story building at 200 Southeast Mizner Boulevard, which features 30 residences, is now…

Alba Palm Begins Vertical Ascent At 4714 North Flagler Drive In West Palm Beach

Construction is ascending on Alba Palm Beach, a 22-story residential building at 4714 North Flagler Drive along the Intracoastal Waterway in West Palm Beach. Designed by Spina O’Rourke + Partners with Schmidt Nichols as the landscape architect and developed by BGI Companies and Blue Road Group, the 262-foot-tall structure will offer 55 residences, including four…

Bessemer Trust sells Palm Beach building for $19M, opting for newer digs

Bessemer Trust sold a Palm Beach office building for $18.7 million to a mystery buyer. New York-based Bessemer, a private wealth management firm, sold the two-story, 11,700-square-foot office building at 222 Royal Palm Way, according to records and real estate database Vizzda. The buying entity, 222 RPW LLC, ties to Gunster attorney Bradley McPherson.

Helgstrand Dressage sells remainder of Wellington sales center for $24M

Helgstrand Dressage sold the remaining 45 acres of its Wellington sales center for $23.6 million, just two years after selling off about half of the original property. The deal follows a tumultuous few years for the horse training and sales operation founded by dressage rider Andreas Helgstrand. In addition to a battle playing out for the horse show in Wellington, a documentary…

Calculating net operating income in multifamily real estate

Net operating income is a metric that can help commercial real estate investors evaluate a property’s performance and estimate its value. Here’s how it works. Calculating net operating income (NOI) is relatively straightforward, but it’s an important metric for multifamily investors. It can help assess a property’s profitability, estimate its value and compare potential investment….

The Fed: Signals of continued economic resilience from the output gap

At the July 31 FOMC press conference, Chair Powell said “recent indicators suggest that economic activity has continued to expand at a solid pace,” even in the face of a labor market that appears to be normalizing. Real GDP growth picked up significantly in the second quarter of 2024, according to the BEA’s advanced estimate, at an annualized rate of 2.8%. While this output…

Real Estate in Focus: Signs of Recovery After the Shocks

Key findings: Global commercial real estate is showing signs of recovery from the slowdown sparked by higher interest rates. Sales of commercial property worldwide in the second quarter of 2024 matched the levels of the same period in 2023, and price declines in the U.S. moderated. Challenges remain, including fears that slowing U.S. job growth could lead to an abrupt…

Using the cash-on-cash return in real estate

Cash-on-cash return is a common metric real estate investors use to measure how much cash flow they can expect from the equity they invest. Using the cash-on-cash return in real estate helps investors estimate how much cash flow each dollar invested in a deal will generate. In other words, it assesses how efficiently the cash, or equity, invested in a property will create…

The Amazing New Residential Buildings Being Developed with Office Space

One of the latest trends in the balance between work from an office and working from home worldwide has arrived in Miami. Mixed use Buildings, with Residential Condos with office spaces are the perfect mix for those looking to live and work in the same place, without doing it completely from home, just taking the elevator to work, without worrying about traffic, weather…

How U.S. elections could impact multifamily real estate

Key takeaways: The results of the upcoming election cycle will influence fiscal and regulatory policies affecting commercial real estate.
Because of legislators’ role in spending, the outcomes of Congressional contests are also important to consider. The results of local elections may be even more impactful, as they can influence city and state policies, such as zoning…

U.S. Inflation Falls Below 3% for the First Time in Over Three Years

The Federal Reserve’s efforts to curb inflation appear to be working, as consumer prices continued to trend down in July. The news could signal an interest rate cut by the Fed in September. The price of goods and services paid by U.S. consumers rose 2.9% in the year-ending July, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau…

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Top Stories
August 15, 2024

Video: KCnomics CEO KC Conway Provides U.S. Economic & Real Estate Outlook

The Discussion: Navigating Commercial Real Estate in a Shifting Economic Landscape

The recent conversation between the host of America’s Commercial Real Estate Show and KC Conway, CEO of KCnomics, provided a deep dive into the current state of the commercial real estate market. Their discussion, which was national in scope and thus may apply less or not at all to Miami, covered a range of topics, from interest rates and inflation to opportunities and challenges within the industry.

Interest Rates and Inflation

KC Conway kicked off the discussion by addressing the crucial issue of interest rates. With the Federal Reserve closely monitoring economic conditions, Conway suggested that we might see rate cuts as early as September. These potential cuts, he argued, would serve as insurance policies against the economic volatility expected around the upcoming elections. While there is optimism that rates will decrease, Conway emphasized that the post-cut environment will likely differ from pre-pandemic norms. This shift reflects the enduring impact of recent economic disruptions, including those driven by inflation.

Speaking of inflation, Conway critiqued the government’s reported figures, labeling them as somewhat manipulated. He highlighted the ongoing struggle with services inflation, which remains high despite improvements in goods inflation. This disparity underscores the complexity of the current economic landscape, where consumer prices are still significantly impacted by rising costs in essential services.

Commercial Real Estate Trends

In the realm of commercial real estate, Conway and the host noted a slowdown in new supply across all property types. This reduction in supply, particularly in multifamily and industrial sectors, has been driven by rising costs and shifting market demands. However, Conway reassured listeners that the industry is not facing an oversupply crisis. On the contrary, the slowdown in new developments may actually mitigate future risks and stabilize the market.

Opportunities Amid Challenges

Despite the challenges, there are numerous opportunities within the current market. Conway pointed to adaptive reuse as a promising strategy, particularly for small-box retail spaces that are increasingly vacant due to the rise of e-commerce. These properties, often located in prime suburban areas, can be repurposed into diverse uses, from medical facilities to convenience stores with modern amenities like EV charging stations.

Conway also highlighted the potential in the housing market, especially in suburban areas. With remote work becoming more entrenched, there is growing demand for housing further from urban centers. However, he noted that the housing market faces its own challenges, particularly with regard to affordability and the regulatory burdens that have increased construction costs.

The Role of Technology and the Consumer

A significant part of the conversation focused on the impact of technology on the industry. Conway warned of the potential risks posed by rapidly advancing technologies like AI and the increased reliance on digital systems. He cited recent disruptions caused by companies like CrowdStrike as a wake-up call for the industry to be more vigilant about technological dependencies and the potential for systemic risks.

On the consumer side, Conway expressed concern about the sustainability of current spending levels. With household debt reaching new heights and credit card balances maxed out, the consumer’s ability to continue driving the economy is in question. This situation is exacerbated by rising costs in essential areas like housing and energy, which have squeezed household budgets.

Looking Ahead

As the conversation drew to a close, Conway offered a sobering reminder that the economic and real estate landscape is fraught with uncertainties. The upcoming elections, ongoing inflationary pressures, and technological disruptions all pose potential challenges. However, for those who can navigate these complexities, there are significant opportunities to be found in the market.

In summary, the discussion between the host and KC Conway provided valuable insights into the current state of commercial real estate. While the industry faces a range of challenges, there are also numerous opportunities for those who can adapt and innovate. As always, staying as informed as possible will be key to success in this dynamic environment.

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Economy
August 15, 2024

Miami Commercial Real Estate News August 7, 2024: Lincoln Road Building Trades at Discount; South Florida MF Construction Pipeline Hits Record; More…

Brickell City Centre Retail Remains 100% Leased At End Of Q2, Swire Says

Brickell City Centre’s shopping mall continues to be 100% occupied, according to a quarterly release by owner Swire Properties. Swire’s second quarter earnings report was released to investors on August 2. It shows that the space was 100% occupied as of Jun 30, as it also was on December 31, 2023. The tally includes space allocated to prospective tenants who have signed letters…

Scott Robins, Philip Levine team up with Tricera to buy Aby Rosen’s Lincoln Road building at discount

Tricera Capital joined forces with Miami Beach-based real estate investors Scott Robins and Philip Levine to buy Aby Rosen’s Lincoln Road retail building at a discount. The joint venture paid $13.6 million for a single-story storefront at 318-334 Lincoln Road, according to a press release. An affiliate of RFR Realty, the New York-based firm founded by Rosen and Michael Fuchs…

Torose Equities expands into Miami Beach’s Lincoln Road after acquiring retail building at a discount

Torose Equities is expanding its reach, adding a Lincoln Road retail building in Miami Beach to its commercial portfolio, acquired at a discount. An affiliate of Miami-based Torose, led by principal Scott Sherman, bought 910 Lincoln Road, a two-story storefront spanning 8,700 square feet, records show. Torose paid $10.4 million for the property, partially financing the purchase…

Torose Equities Taking Advantage of ‘Wealth Migration’ in Miami Retail

The retail segment of CRE is thriving thanks to consumer demand – and Torose Equities is seizing the opportunity in Miami. Particularly, Scott Sherman, founder and principal of the real estate investment firm told GlobeSt that demand has been “strong” in the past year or two. “It’s become a more favorable asset class,” he said. “You’re seeing a lot of capital still actively pursuing…

Foundation Pour Completed At 62-Story Aria Reserve North Tower

A foundation pour was completed over the weekend at the 62-story Aria Reserve North Tower, according to a social media post by shell contractor L&R Structural Corp. Miami Building Department Records show a master construction permit for the tower was issued on June 11, with construction cranes installed shortly after. Aris Reserve includes twin towers, each rising…

CMC, Morabito finish Bay Harbor Islands condo project

CMC Group and Morabito Properties completed Onda Residences, their waterfront luxury Bay Harbor Islands condo project. The joint venture has sold all but three units in the eight-story, 41-unit condominium at 1135 103rd Street, according to a company statement. Ugo Colombo’s CMC and Valerio Morabito’s Morabito launched sales for the project three years ago and have…

Miami-Dade Map Shows Where Supertalls Are Permitted In Miami

Below is the the Airport Height Restriction Zones Map for Miami International Airport, issued by Miami-Dade. The map shows that parts of Downtown and Brickell allow for buildings of 1,049 feet above mean sea level, or supertall height. Park West property owners can develop up to 709 feet, while most of Edgewater is in a zone allowing 649 feet. Developers wanting to build…

Nuveen, Pimco list Waterford offices for sale, as Miami-Dade properties keep hitting the market

Nuveen Real Estate and Pimco put an office building at the Waterford Business District in Miami-Dade County on the market, The Real Deal has learned. The companies listed the 10-story 1000 Waterford at 1000 Northwest 57th Court, across from Miami International Airport, according to listing brokers… Bids for the building, which hit the market unpriced…

Okan Tower Construction Workers Warm Up ‘Like Athletes’

Construction crew at the Okan Tower construction site are warming up and stretching before work, “like athletes,” according to the social media feed of contractor  Jacob Companies. Photos uploaded this week show workers pouring walls and columns, while preparing slabs. Okan Tower will eventually reach a height of 70 stories, or 902 feet, making it one of the tallest in Miami.

South Florida’s multifamily construction pipeline reaches record, as developers seize on south Miami-Dade

Across South Florida, developers are building a record number of multifamily units. The booming pipeline comes as the tri-county region’s leasing frenzy has slowed and unbridled rent growth has calmed. By year-end, developers are expected to finish 23,863 units across South Florida, the highest number since 2002, according to Berkadia’s mid-year multifamily report.

Mill Creek cuts back Ojus multifamily project, as South Florida sees record apartment construction pipeline

Mill Creek Residential scaled back the second phase of its Modera Aventura multifamily project, nearly halving the building plans. The Boca Raton-based firm now proposes an eight-story, 251-unit project, down from its previous plan for 15 stories and 420 units, according to Mill Creek’s application to Miami-Dade County submitted on Monday. The proposal also is…

M-Tower Gets Residential Density Boost With New Utilities Agreement

Miami Dade’s Water and Sewer Department has agreed to provide utilities for additional units beyond what was originally planned for M-Tower, a 57-story residential building planned at 56 Southwest 1st Street in downtown Miami. The revised utility agreement, recorded in early July, now states the development will include 765 apartments, 4,708 square feet of retail, and 5,000 sf…

Second Phase of Caribbean Isles Could Offer 142 Residences at 19755 SW 110th Court in Miami

Miami-based Caribbean Village LTD., an affiliate of Pinnacle Housing, hopes to get approval for revised plans regarding the second phase of Caribbean Isles. The first phase, which finished construction in 2019, currently offers 123 units geared toward seniors. The second phase would offer 142 affordable housing units in an eight-story building. This is a 42 percent increase…

33-Story Tower At Miami Worldcenter Celebrates Top Off

The 33-story Crosby Miami Worldcenter has topped off, according to contractor Beauchamp Construction Co. A celebration to mark the event was held on July 19. Groundbreaking for the tower took place in January 2023. The Crosby has a permanent height of 390 feet. It will include: 450 condo units (allowing short-term rentals) 22,000+ square feet of amenities rooftop bar…

40-Story Downtown Miami Tower Without Parking Garage Tops Off After Just 18 Months

Downtown Miami’s 501 First tower topped off recently. The 40-story tower topped off in late June, just 18 months after breaking ground, according to an Instagram post. Glazing installation is also now nearing completion. The development includes 448 residential condos allowing short-term rentals, along with 3,198 square feet of retail. No parking garage was built.

M-Tower Approved At 600+ Foot Height, Gets Utilities For More Units

M-Tower’s new height has been approved by the Federal Aviation Administration. Miami Dade’s Water and Sewer Department has also agreed to provide utilities for additional units over what was originally planned. According to an FAA determination letter issued in July, M-tower’s proposed height of 605 feet above ground and 615 feet above sea level does not represent…

Rendering Released For Miami-Dade Waste To Energy Facility, Largest In U.S.

Miami-Dade is planning the largest waste-to-energy facility in the U.S. AtkinsRéalis Group said today that it had been awarded a $65 million contract to oversee the project, and released a conceptual rendering. The facility could cost $1.5 billion, and be capable of processing 4,000 tons of waste per day. A location has not been selected yet. Only one new WTE facility…

1,000-unit pre-2010 plan near Miami River & 27th Avenue bridge revamped, OK’d

A 1,000-unit residential development first proposed years ago for a site near the Miami River and the 27th Avenue Bridge is moving ahead. Delaware Parkway is the first phase of a larger overall development known as the Miami River Rapids MUSP (Major Use Special Permit). The city’s Urban Development Review Board has unanimously recommended approval…

Mr. Merrick’s Orderly Laws: Blueprint of Coral Gables in the Laws of the City’s Founder, Many Still on the Books

George Merrick’s meticulously planned Coral Gables, conceived a century ago, continues to be influenced by his visionary ideas – and by the laws that he implemented. We did a deep dive to see what strange ordinances are still on the books today and discovered a fascinating interplay between the City’s beginnings and the regulations that continue to shape our community.

North Miami Beach Development With Multiple Towers Rising Up 48 Stories Submitted For Review

Plans for the Uptown Harbor megaproject have been submitted to the North Miami Beach Planning and Zoning Board for review. Uptown Harbor is proposed to include ten high rise buildings, rising up to 48 stories, or 490 feet. The project is proposed to include: 375,000 SF of commercial-retail space 200,000 SF of office space 2,000 residential units 244-key hotel 4,743 garage…

Plat Documents Submitted For 600-Unit Development Across From Midtown Miami

Plat documents have been submitted to Miami-Dade for a proposed development across from Midtown Miami. The name of the new plat is Wynwood HQ. Wynwood HQ is planned to include a development with 598 apartment units, 12,836 square feet of retail, 4,997 square feet of office, and 3,327 square feet of restaurant, the filing states. North Miami Avenue, LLC is listed as the owner.

Commissioner re Miami-Dade Transit: ‘Northeast Corridor Will Be Under Construction The End Of Next Year’

Miami-Dade Commissioner Eileen Higgins has provided an update on the county’s plan to add multiple rapid transit corridors, according to Local10. The 13.5 mile Northeast Corridor commuter rail will be under construction by the end of next year, she said. The Biden administration recently announced that it is recommending the project receive $263.7 million in federal funding.

Tom Brady Enterprises Signs 8,415 SF Office Lease at THE WELL Bay Harbor Islands in Miami

Tom Brady Enterprises (TBE) Capital Management has signed an 8,415-square-foot office lease at THE WELL Bay Harbor Islands, a mixed-use project currently under development in Miami. TBE will relocate its headquarters to a 113,000-square-foot office building located at 1177 Kane Concourse within the development. Scheduled to open in 2025, the office building…

Dezer seeks site plan, waivers approval for long-planned Uptown Harbour project

Four years after scoring a key approval for the redevelopment of North Miami Beach’s Intracoastal Mall, Dezer Development is taking the next step. Sunny Isles Beach-based Dezer wants to build the massive mixed-use Uptown Harbour on the 29-acre site of the Intracoastal Mall at 3501 Sunny Isles Boulevard, as well as 3745 and 3909 Northeast 163 Street. The project already…

Allapattah apartment complex proposed near transit station

ERF Investments has proposed a five-story apartment complex that includes workforce housing in the Allapattah neighborhood of Miami-Dade County. The North Miami Beach-based developer filed an administrative site plan with county officials for a 0.25-acre site on the west side of Northwest 23rd Court, just north of Northwest 38th Street. The vacant property is surrounded…

Lennar drops $28M on Homestead dev site, in contract for Princeton site

Records show Lennar bought a 59-acre site in Homestead for $28 million. The seller, J.F.M. Development Corporation, managed by Nelson Graveran, won approval for a 296 townhouse development on the land last year, Florida Yimby reported. Dubbed Palm Cove Reserve, the planned units would range between 1,400 square feet and 1,700 square feet with three…

Developers Sign Utility Agreement For Four Seasons Private Residences Coconut Grove

The developers behind the Four Seasons Private Residences Coconut Grove have signed a utility deal to connect the new 20-story tower to Miami-Dade’s water and sewer system, executed on June 25. According to Miami’s Water and Sewer Department, the agreement will permit the connection for up to 72 residential units and a 5,071-square-foot restaurant. A construction permit…

New Renderings Revealed for Cassia in Coral Gables’ Merrick Park District

New renderings have been revealed for Cassia, a 12-story residential development by Alta Developers in the heart of Coral Gables. This fully furnished luxury turnkey condominium, designed by Behar Font & Partners, is located at 4011 Salzedo Street in the Merrick Park District. Cassia will feature 174 residences, including one-, two-, and three-bedroom units ranging from 662…

Construction Completes on Onda Residences at 1135 103rd Street in Bay Harbor Islands

Construction on Onda Residences, an 8-story residential condominium designed by Arquitectonica in Miami’s Bay Harbor Islands, is complete upon receiving its Temporary Certificate of Occupancy (TCO). This milestone marks the delivery of the boutique waterfront tower located at 1135 103rd Street as owners move forward with unit closings and prepare to move into…

Miami’s Brickell Office Market Hits Record $200 Square Foot Rents in 2024

The Brickell area of downtown Miami’s office market has seen rental prices soar to new heights due to intense demand from blue-chip companies based in New York, Chicago, Los Angeles and Latin America seeking premium office locations, surpassing the available supply. Brazilian bank Banco Master has secured the final 26,000 square feet in the prestigious 830 Brickell…

‘Delmas North Apartments’ to Offer 80 Workforce Units at 13650 N.E. Second Court in Miami

Delmas North LLC is one step closer to breaking ground on an 80-unit apartment complex, thanks to the security of a $16.5 million construction loan. Our sources indicate that the Delmas North Apartments will measure six stories above grade, offering homes measuring 557 to 1,057 square feet each. As an affordable housing development, residency will…

Lease roundup: Venture X co-working on tap in Boca Raton, Brazilian bank opening at 830 Brickell

Co-working space provider Venture X will open in Boca Raton. Venture X leased 29,000 square feet on the top floor of the Palmetto Central office complex at 1489 and 1499 West Palmetto Park Road, according to a news release from the tenant’s broker. Venture X is expected to move in in the third quarter of next year. Derek Baker of Colliers represented Venture X.

South Florida commercial real estate sales volume rebounds in 2nd quarter

The sales volume for commercial real estate in South Florida increased in the second quarter despite high interest rates, according to property data firm Vizzda. Tempe, Arizona-based Vizzda tracked all commercial real estate sales of at least $1 million in the tri-county area. There were $4.17 billion in deals in the second quarter, up 21.6% from the first quarter, up increasing 3.5%…

Miami offers least apartment space for $1,500 in Florida, report says

The city of Miami offers the least amount of space for a $1,500-a-month apartment than any municipality surveyed by RentCafe, a recent report stated. According to the report from RentCafe, a rental listing website run by Santa Barbara-based proptech company Yardi, the average size for an apartment that charges $1,500 a month in Miami is 533 square feet. That is 200 feet below…

IP Capital Targets Two Diverse Asset Types in Florida: South Florida and Tampa Bay are its biggest focuses

IP Capital Partners is looking to take advantage of one struggling asset class and one that is surging – the office and industrial sectors. Most notably the office space is looked at as a scary place for investors in the current landscape. Since the onset of the pandemic, the popularity of working from home has surged – hurting the office sector and driving up vacancies.

TM Residential Proposes 80-Unit ‘Shalimar II’ for 4800 SW 82nd Avenue in Davie

Miami-based TM Residential hopes to get a rezoning approval for a multi-family housing development in Davie. Shalimar II would require 85,000 square feet of new construction on a 4.85-acre build site. The South Florida Business Journal notes that plans call for 80 homes, measuring 767 to 1,731 square feet each. Floorplans span one-bedroom to three-bedroom designs.

White Oak Development Proposes ‘Saddlebridge Downtown Davie’ West of Davie Road and Southwest 42nd Street

In less than two weeks, Davie’s Planning & Zoning Board will hear plans for “Saddlebridge Downtown Davie”, a multi-family housing development in Broward County. The venture would be located on a mostly vacant parcel near the Bergeron Rodeo Grounds. If approved, it would yield 286 apartments in two four-story buildings connected by a pedestrian bridge. The units…

YMP Real Estate adds another Broward office complex to portfolio

For the second time in five months, YMP Real Estate beefed up its commercial portfolio by acquiring a Broward County office complex. An affiliate of Lauderdale Lakes-based YMP, led by Moshe and Yaffa Popack, paid $26 million for Commercial Place I and II, a pair of office buildings at 3230 and 3250 West Commercial Boulevard in Oakland Park, records show.

Developers Reveal Design Plans For 24-Story Tower At 20 N. Ocean Blvd. in Pompano Beach

The Related Group and BH Group have submitted design plans with proposed amendments for a new 24-story condo/hotel project designed by Nichols Architects along the oceanfront in Pompano Beach. The city’s Development Review Committee is set to review the plans for the 3.7-acre site at 20 North Ocean Boulevard on August 7. The developers, operating through…

Silver Star pays $27M for Delray Beach self-storage facility as part of company-wide pivot

Silver Star Properties paid $26.5 million for a Delray Beach self-storage facility as part of a company reorganization. Silver Star, led by co-CEOs David Wheeler and Gerald Haddock, acquired a two-building complex leased to Public Storage at 14810 Hagen Ranch Road, records and real estate database Vizzda show. The buyer obtained a $15.5 million loan that matures in 2026…

BDT & MSD nets $64M with $1B refi of Boca Raton Resort & Club

BDT & MSD Partners is making big equity gains thanks to a $1 billion refinancing of Boca Raton Resort & Club. Citi Real Estate Funding provided the two-year, floating-rate interest only loan, which replaces a previous $900 million debt secured by the 1,047-key luxury hotel and private club at 501 East Camino Real in Boca Raton, according to a Fitch Ratings report.

Developers File Plans for “the Gallery at Marina Village”, Located at 1300 Broadway in Riviera Beach

Three developers have filed plans for “the Gallery at Marina Village”, a mixed-use venture in Riviera Beach. Located on a vacant 2.45-acre parcel, the venture would comprise 418 apartments. The studio to three-bedroom units would measure 490 to 1,195 square feet each, with most hovering around 786 square feet. Related Group, Tezral Partners, and BH Group are leading the venture.

City Officials to Consider 25-Story Dormitory for 1200 S. Dixie Highway in West Palm Beach

In fall 2023, Palm Beach Atlantic University welcomed its largest incoming class—a record 3,800 students in its 55-year history. Now, to accommodate the Christian university’s growing size, it has plans for a 25-story dormitory. The South Florida Business Journal reports that the addition would require 358,400 square feet of new construction, replacing a 3,852-square-foot…

Centaur scores $160M loan for Panther National project in Avenir

Centaur Holdings landed a $160 million loan for Panther National, a planned luxury single-family home community near Palm Beach Gardens. West Palm Beach-based Southern Realty Trust and its affiliate, Sunrise Realty Trust, provided the financing, of which $85 million will refinance an existing note and the remainder will go toward the construction of Panther…

Adapting to Change: The Evolving Landscape of Retail Leasing 

Where Retailers are Looking to Lease  When scouting for lease locations, retailers prioritize visibility and accessibility for shoppers. This focus has boosted the appeal of open-air shopping centers over traditional, dimly lit malls, with even older, unrenovated centers thriving. These open-air shopping centers are usually located in the suburbs and considered safer bets for future…

Eric Eikenberg: Everglades Foundation CEO spearheads restoration plans

Since taking on the role of Everglades Foundation’s CEO in 2012, Eric Eikenberg has been South Florida’s leading voice on expediting restoration efforts and bringing extensive public awareness for the Everglades.  During Mr. Eikenberg’s tenure as CEO, The Everglades Foundation has provided scientific, technical, and policy support to numerous decision-makers…

CRE Lenders and Investors Increase their Focus on Sustainability, Survey Finds

Amid more frequent extreme weather events, varying regulations and raised consumer focus on sustainability, real estate lenders and investors are increasing their focus on the topic. However, the drivers and details of that focus continue to shift, with implications for the CRE landscape of the future. Today I’ll summarize findings from the Commercial Real Estate Finance…

How AI is revolutionizing treasury in commercial real estate

From cash management to resident engagement, artificial intelligence (AI) can play a transformative role in commercial real estate. That’s particularly true for treasury management, which is key to optimizing liquidity and helps drive strategic decisions. The increasing complexity and volume of financial data can challenge traditional treasury management approaches.

Apartment Occupancy and Rent Growth Nationally Continue to Stabilize in July

The U.S. apartment market continued to stabilize in July. Occupancy in market-rate apartments held steady at 94.2% in July, marking the third straight month of occupancy remaining at that rate. Historically speaking, occupancy tends to level off in July. Effective asking rents grew 0.3% during the month of July. That was less than the typical July pace from the 2010s decade…

Citizens Property Insurance seeks approval for rate hike

Citizens Property Insurance requested a 13.5 percent rate hike that will likely affect property owners in the most expensive home insurance market in the country. The Florida-backed insurer needs a nearly 93-percent increase to match the private market, but state regulations cap the amount that rates can rise annually, Newsweek reported. The smaller jump would…

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August 7, 2024

Miami Commercial Real Estate News August 1, 2024: Miami High-Rise Construction 2X State of California; Brickell Lease Record, Manhattan Levels; Duffy’s Site Trades; More…

Brickell Office Lease Hits Record High, Matching Manhattan Prices

Miami office space rents have broken a new record, according to the FT and Bloomberg. The reports say that Brazil’s Banco Master leased 26,000 square feet of space at 830 Brickell for around $190 per square foot. That’s a record price for Florida, and “on par with Manhattan’s priciest office space.” 830 Brickell is now 100% leased. It will become the tallest office tower…

Construction Update Issued For Legacy Miami Worldcenter

Construction at Miami Worldcenter’s 55-story Legacy tower could resume in two to three m0nths, according to The Real Deal. The report cited a July 11 letter to buyers stating that drawings necessary to resume construction had been completed. The tower broke ground in 2021, with a foundation pour in mid-2022. Work was halted when the tower reached level 16, where it…

Developer From Kazakhstan To Partner On 185 Units In Brickell

Developers have announced plans for a new building called Parkside in Brickell, according to the SFBJ. Parkside will include 164 condo-hotel units and 21 condo units. A rooftop pool overlooking Simpson Park is also planned. Developer BI Group of Kazakhstan and Miami’s Habitat Group are partnering on the project, after paying $14.8 million for a site at 1750 SW 1st Avenue.

Plat Docs Resubmitted For Trinity Cathedral Site, Where 42-Story Tower Planned

Plat documents for the Trinity Cathedral site were resubmitted this morning. The updated plat survey shows that a new development with 462 residential units and 14,000 square feet of space for the church is planned. It’s not clear why the plat is being resubmitted. A note says that corrections are being made. A 42-story tower is currently moving through the approval process…

Iconic Miami Sports Bar Duffy’s Tavern Sold for $4.5 Million

Months after New Times broke the news that the end of beloved Miami restaurant Duffy’s Tavern was near, the restaurant’s site has sold for $4.5 million. According to Kerdyk Real Estate, who handled the sale of the development site at Duffy’s Tavern Sports Grill, the landmark bar and restaurant at 2108 SW 57th Ave. has sold for $4.5 million in a site deal on July 26.

Last call for Duffy’s Tavern near University of Miami?

Duffy’s Tavern near the University of Miami campus in Coral Gables could be ending its 70-year run after the iconic bar’s owners recently sold the property. Wayne Russell and James Fabbricatore sold the business at the single-story building at 2108 Southwest 57th Avenue that’s been open since 1955, as well as an adjacent 3,150-square-foot automotive center, according to a press…

Alger family sells nearly 800 acres outside Miami-Dade’s UDB for $56M

The Alger family, who have been farmers in Miami-Dade County for generations, sold a nearly 800-acre land tract outside the Urban Development Boundary for $56 million. The deal marks the second big south Miami-Dade property sale this month by the Algers, as the family is trimming its land holdings. The Algers sold 797 acres across 22 parcels that span from north…

David Martin’s Terra completes Mr. C Residences in Coconut Grove

David Martin’s Terra delivered Mr. C Residences in Coconut Grove, with an expected sellout of more than $500 million. The developer partnered with Maggio Cipriani’s Mr. C on the luxury branded condominium project at 2678 Tigertail Avenue. Sales of the 20-story, 230-unit development launched in 2020, and the condos sold out during the pandemic. The biggest sale to be recorded…

SG Holdings Delivers 578-Unit Affordable Seniors Housing Community in Miami’s Overtown Neighborhood

SG Holdings, a partnership between Swerdlow Group, SJM Partners and Alben Duffie, has completed the housing component of Sawyer’s Walk, marking the delivery of the largest affordable senior living community in the United States within the last decade, according to the developer. The studio, one- and two-bedroom housing units, which are designated for seniors earning…

Limestone Asset Management Acquires Metro Miami Retail Property Leased to LA Fitness for $13.6M

Limestone Asset Management has acquired a single-tenant retail property in the Miami suburb of Doral for $13.6 million. LA Fitness occupies the building, which was built in 2001 and totals 37,500 square feet. Kevin Sanz of Orion Real Estate Group represented the buyer in the transaction. Alex Sharrin of JLL Capital Markets represented the undisclosed seller.

Nuveen, SJC Ventures Get $69M for Doral Retail Project

The developers will break ground on Doral Marketplace this fall. Image courtesy of CBRE The joint venture of SJC Ventures and Nuveen Real Estate has obtained a $69.4 million loan for the development of Doral Marketplace, a 83,329-square-foot shopping center in Doral, Fla. Construction is slated to begin this autumn, while the initial store openings are expected in the latter part…

Bridge Industrial Begins Office-to-Industrial Redevelopment in Miami

Bridge Point Flagler Station will comprise two industrial buildings totaling 326,448 square feet. Image courtesy of Bridge Industrial Bridge Industrial has begun demolishing the former headquarters of Ryder Systems in Miami, where it will develop a two-building, 326,448-square-foot Class A industrial complex. Bridge Point Flagler Station will come online on a speculative…

Developer scores $17M construction loan for apartments near North Miami, marking one of the first Live Local Act financings

Daniel Abreu scored a $16.5 million construction loan for an 80-unit apartment building near North Miami, marking one of the first Live Local Act project financings. Abreu plans a six-story building on a 1.9-acre vacant site at 13650 Northeast Second Court in unincorporated Miami-Dade County, according to the lender’s news release. Ocean Bank provided the construction financing.

Miami Commission Approves Watson Island Referendum; BH3 & Merrimac Unveil First Rendering

This November, City of Miami residents will vote on Watson Harbour, a mixed-use development planned for the south side of historic Watson Island. The project, proposed by BH3 Management and Merrimac Ventures, includes two hotels, retail spaces, offices, residences, dining areas, and expansive public spaces. Located directly on Biscayne Bay between Downtown Miami…

Watson Island condo revamp? Developers’ $160M+ purchases of city-owned sites head to Miami voters

Voters will decide whether the city can sell land on Miami’s Watson Island to two development groups in separate deals geared at developing more condos. Ecoresiliency Miami, a joint venture between ESJ Capital Partners and David Martin’s Terra, would tentatively pay $135 million for 5.4 acres that are currently part of the 13.3-acre Jungle Island property at 1111 Parrot Jungle…

Snafu pits affordable housing against county’s space needs

A triangle of “surplus” land in Miami’s Allapattah neighborhood has county commissioners squabbling over its best use. Commissioner Marleine Bastien wants to build affordable housing on the site at 2750 NW 20th St. A resolution she submitted at the latest county commission meeting proposed selling the less than two-thirds of an acre for $10 for construction of up to 150…

Tom Brady’s firm leases at Terra’s The Well in Bay Harbor Islands

Former quarterback-turned-businessman Tom Brady will move his family office’s headquarters to The Well health-focused development in Bay Harbor Islands. TEB Capital Management leased 8,400 square feet at the mixed-use project that’s under construction at 1177 Kane Concourse, according to a news release. The deal comes as South Florida has earned a reputation as a magnet…

$100 million grant to help restore Venetian Causeway bridges

As the scenic Venetian Causeway nears its 100th birthday, the federal government is allocating over $100 million to restore 11 historic bridges along the road that connects Miami to the beach so they can endure another 75 years. US Transportation Secretary Pete Buttigieg announced $100.5 million in funding for Miami-Dade County for the Venetian Causeway Bridge Replacement…

World’s largest cruise terminal nears PortMiami opening

PortMiami is preparing for growth with upcoming development focused on denser use to maximize limited port space, including an opening soon of the world’s largest cruise terminal. The two primary sides to the seaport’s business are cruise and cargo, said Hydi Webb, PortMiami director and CEO. “Over the next five years, we have a very strong capital development program…

First of Signature Bridge arches is finished

It’s official. The first of six towering arches that will become a Signature Bridge hugging a rebuilt I-395 in downtown Miami is complete. The I-395/SR 836/I-95 Design-Build Project is the massive undertaking of a partnership between the Florida Department of Transportation (FDOT) and the Greater Miami Expressway Agency and its contractor, the Archer Western…

Wynwood project The Wyn Mood C sets aside units as affordable housing

New workforce housing is coming to the Wynwood neighborhood of Miami. A project called The Wyn Mood C is planned as a four-story building offering 72 apartments, with 20% of the units reserved as workforce housing. Owner-developer Wyn 107 Development LLC plans the new building of about 53,401 square feet at 107 NW 31st St. The city’s Urban Development Review Board…

Zach Vella expands Miami portfolio with Wynwood retail purchase

Zach Vella is boosting his reach in Miami after acquiring a four-building portfolio in Wynwood. An affiliate of Vella’s eponymous Los Angeles-based real estate investment firm bought a restaurant currently leased to Barteco at 282-292 Northwest 25th Street, and an empty space previously leased to Dogfish Head Brewery at 325-339 Northwest 24th Street, according…

Debt payment concerns echo from baseball stadium debacle

A shift in bank letters of credit for $100 million in bonds reactivates an appalling baseball stadium deal that left taxpayers on the hook for $3 billion. That bond issue is among a fistful that Miami-Dade County and the City of Miami used in 2009 to build a stadium as Marlins owners claimed that without a new ballpark the team would leave. Those owners later sold out, bragging about…

Prologis Signs Aeronautical Engineer Global Turbine Services For 78K SF In Miami-Dade

Aeronautical engineer Global Turbine Services (GTS) signed a 10-year lease for 77,900 square feet at Prologis (PLD)’ Beacon Industrial Park in Miami-Dade County. The warehouse — located at 10814 NW 33rd Street, about 10 miles west of Miami International Airport — spans 115,200 square feet. The global industrial real estate investment trust purchased the property…

MHN Miami Multifamily Report – June 2024

South Florida’s strong fundamentals drove its performance following the first quarter of 2024. Advertised asking rents increased 0.2 percent on a T3 basis, to $2,427, marking the fourth consecutive month of positive growth. The average overall occupancy rate in stabilized properties decreased by 40 basis points year-over-year, but still stood…

830 Brickell in Miami Lands $565 Million in Financing Ahead of Completion

830 Brickell, a 57-story, 640,000-square-foot Class A+ office tower in Miami’s Brickell Financial District, has secured $565 million in financing ahead of its delivery this fall. The long-term loan from TYKO Capital will pay off the development’s existing construction loan from MSD Partners. This emphasizes 830 Brickell’s significance as a base for many firms establishing their…

Brickell Tower Height Approval Issued After Dade Objects To Taller Elevation

The Federal Aviation Administration issued a determination this morning that a proposed Brickell tower does not present a hazard to air navigation. According to the determination letter, a building height of 737 feet above ground or 750 feet above mean sea level is not a hazard. The proposed height was submitted to the FAA in April, following an objection by Miami-Dade’s…

Miami High-Rise Construction Activity More Than Double the Entire State Of California

There are currently 90 high rises under construction in the city of Miami – double what is currently under construction in the entire state of California, according to a map created by a Reddit user. The analysis looked at buildings now under construction that are taller than 10 stories. In Miami, 90 such buildings are underway – second most in the U.S., behind only New York.

SJC, Nuveen land $69M construction loan for Whole Foods-anchored project in Doral

SJC Ventures and Nuveen Real Estate are moving quickly to start building a Whole Foods-anchored project in Doral, recently securing a $69.4 million construction loan. Deutsche Bank provided the financing for the joint venture’s Doral Marketplace, a planned 83,000-square-foot shopping center on a 10-acre vacant property on the southwest corner of Northwest 41st Street…

Scott Robins, Philip Levine team up with Tricera to buy Aby Rosen’s Lincoln Road building at discount

Tricera Capital joined forces with Miami Beach-based real estate investors Scott Robins and Philip Levine to buy Aby Rosen’s Lincoln Road retail building at a discount. The joint venture paid $13.6 million for a single-story storefront at 318-334 Lincoln Road, according to a press release. An affiliate of RFR Realty, the New York-based firm founded by Rosen and Michael Fuchs…

Lights On At 588-Unit Forma As It Nears Completion

The lights are on at the 39-story Forma apartment tower near Midtown Miami as it nears completion. The development includes 588 apartments. Whole Foods has filed for permits to build a large supermarket at the ground floor of the tower. Those permits are still in process as of this morning. Crescent Heights is the developer, with Arquitectonica the architect.

First Rendering Released Of Proposed Watson Island Baywalk; Voters Will Decide

Miami voters will decide in November on charter amendments related to redevelopment at Watson Island. Revised development plans have been proposed for the north side, formerly Parrot Jungle, and the south side, formerly known as Island Gardens. If approved by voters, Ecoresiliency Miami LLC would pay $135 million for 5.4 acres on the north side. They would also build…

Construction at Dan Kodsi’s Legacy Miami Worldcenter still on hold

Construction is still stalled at Legacy Hotel & Residences after a design issue halted work at the mixed-use tower at Miami Worldcenter in March. But work could resume in the next two to three months. Dan Kodsi’s Royal Palm Companies is developing the 50-story building at 942 Northeast First Avenue in downtown Miami. Condo sales launched in 2019 and construction began…

FM Capital Secures $11M Bridge Loan for Office Building in Miami Beach

FM Capital has secured an $11 million bridge loan for the financing of an office building located at 301 Arthur Godfrey Road in Miami Beach. Formerly known as the HSBC Building, the property is now known as the Citizens Bank Building. Noam Temchin of FM Capital originated the interest-only, floating-rate loan through Sheridan Capital on behalf of the undisclosed borrower.

Developers Complete Remi on the River at 999 NW 7th Street in the Miami River District

Mast Capital, in partnership with AEW, has completed Remi on the River, a new multifamily development at 999 Northwest 7th Street in the Miami River District. Designed by Corwil Architects, the apartment community offers 342 rental units with various floorplans and amenities. It is situated near Miami’s Brickell Financial District, the Miami Health District, Downtown Miami…

Habitat, partner plan condo-hotel project in Brickell after paying $15M for dev site

Habitat Group is partnering with a Central Asian firm entering the U.S. market to build a condo-hotel on a Brickell development site acquired for $14.8 million. An affiliate of Miami-based Habitat, led by CEO Santiago Vanegas, and Kazakhstan-based BI Group bought an 0.6-acre assemblage at 1750 Southwest First Avenue previously slated for a Marriott-branded hotel…

Sant Ambroeus to Open First Miami Location at The Fifth Miami Beach

Sumaida + Khurana and Bizzi + Bilgili have announced that Sant Ambroeus will open its first Miami location at The Fifth Miami Beach. The restaurant and coffee bar will occupy over 7,000 square feet at the base of this Class A+ office building designed by Alberto Campo Baeza. Expected to open in late 2025, Sant Ambroeus is renowned for its contemporary interpretation…

Construction Concludes on ‘Remi on the River’ at 999 N.W. 7th Street in Miami

A market-rate apartment complex has officially ended construction along the Miami River. The aptly named “Remi on the River” is a 342-unit community offering studio to three-bedroom apartments. The South Florida Business Journal indicates that they measure 465 to 1,334 square feet. Rent for the smallest units starts at $2,171 a month, per Apartments.com. In-unit features…

Developers complete residential component for Sawyer’s Walk at 249 NW 6th Street in Overtown Area of Miami

SG Holdings, a partnership among Swerdlow Group, SJM Partners, and Alben Duffie, has completed the housing component of Sawyer’s Walk at Located at 249 Northwest 6th Street in Overtown, marking it as the largest affordable senior living community in the US within the last decade. The mixed-use development includes 1.5 million square feet of space, featuring 578 residential…

Villa Miami Gets General Contractor, Groundbreaking Set for This Summer for Edgewater Development

Moss Construction has been awarded the construction of Villa Miami, a waterfront residential development in Miami’s Edgewater neighborhood. The project, a collaboration between Major Food Group, David Martin’s Terra, and One Thousand Group, is set to break ground later this summer. “We’re thrilled to work with Moss Construction on another landmark…”

Financially troubled Columbus Center in Coral Gables facing deed in lieu of foreclosure

Affinius Capital may not own the Columbus Center in Coral Gables for much longer. The lender on the office building could move forward in a deed in lieu of foreclosure, according to… Minneapolis-based global alternative investment management firm Värde Partners is considering the workout… for the troubled $67.4 million loan on the property at 1 Alhambra Plaza…

Sunny Isles Now Ranks As The 14th Tallest City In The U.S.

Sunny Isles Beach ranks as the 14th tallest city in the U.S., according to a list compiled by the Council on Tall Buildings and Urban Habitat. The list ranks each city by the number of buildings over 150 meters, 200 meters, and 300 meters. Sunny Isles now has 16 buildings over 150 meters, behind Las Vegas (with eighteen 150 meter buildings) and ahead of Minneapolis…

Galbut family completes short-term rental-friendly Gale tower in Miami, closings underway

The Galbut family completed Gale Miami Hotel & Residences, a short-term rental condominium and hotel tower in downtown Miami. An affiliate of GFO Investments, led by cousins Keith Menin and Marisa Galbut, secured a temporary certificate of occupancy for the 51-story building at 601 Northeast First Avenue, developer Russell Galbut said. The company, Sixth Street Miami…

Miami Among The Fastest Growing Big US Cities Over The Past Year

Miami was among the fastest growing big U.S. cities, according to recently released Census data. Between July 2022 and July 2023, Miami’s population increased by 1.3%. That makes Miami the tenth fastest growing big city (defined as a population above 250,000), according to an Axios analysis. As of July 2023, Miami’s population stood at 455,924. The wider Miami metro…

Documents Submitted For Edgewater Development With 1,178 Residential Units

An Edgewater residential project on the the former Chinatown property is continuing to move through the planning process. On July 16, plat documents for the property were refiled with Miami-Dade to address comments made by the county, according to a note attached to the submission. The plat is named Seventeen Plaza. A Multi-story mixed use C.B.S. Building with 1,178…

OKO Group, Cain International Obtain $565M Loan for 830 Brickell Office Tower in Miami

Co-developers OKO Group and Cain International have obtained $565 million in financing for 830 Brickell, a 57-story office tower underway in Miami’s Brickell district. TYKO Capital, a joint venture between Adi Chugh and a Florida-based hedge fund that was established last year, provided the loan that pays off an existing construction loan that MSD Partners provided…

830 Brickell office tower lands $565M perm loan, among South Florida’s biggest refinancings ever

The office tower 830 Brickell scored a $565 million loan from an Elliott Investment Management-backed lender, marking one of South Florida’s biggest refinancings ever. Vlad Doronin’s OKO Group and Cain International are developing the 57-story tower at 830 Brickell Plaza in Miami. The project, the first new standalone office tower in the Brickell Financial District in the…

Lennar, BH drop $18M on shuttered Aventura area golf course to develop homes

Lennar and BH Group dropped $17.5 million on a shuttered 104.3-acre golf course near Aventura, to redevelop with single-family homes. The partnership plans to tear up the fairways and build a community with 103 homes on the site at 19650 Presidential Way, BH’s website shows. The redevelopment of the golf course, known as Presidential Estates, will add to the existing gated…

Lease roundup: Restaurant Sant Ambroeus will open at Fifth Miami Beach project

Italian restaurant Sant Ambroeus will open its first Miami-Dade County outpost in South Beach. Sant Ambroeus leased more than 7,000 square feet at The Fifth Miami Beach office building that’s under construction at 944 Fifth Street and 411 Michigan Avenue in Miami Beach, according to the developers’ news release. The restaurant will open late next year.

Townhome Developments ‘Magnolia at Pembroke Park’ and ‘Dania Preserve’ Emerge in South Florida

Communal amenities include a children’s playground and swimming pool. Currently, residences start at $518,990. At the time of publication, the website’s availability map indicated that 20 homes had already been sold. Lennar secured the build site for $5.2 million in September 2023. Magnolia at Pembroke Park is located at 5190 S.W. 37th Street, Miami, FL, 33155, straddling…

Investors scoop up dev site near Pompano Beach casino for $29M, amid near record South Florida multifamily pipeline

Atlantic Residential and Northwestern Mutual Life Insurance scooped up a development site for $29.1 million, to build apartments near Harrah’s Pompano Beach Casino. Their purchase comes amid a near record construction pipeline of multifamily units in South Florida, which has slowed leasing and calmed rent growth. Atlanta-based Atlantic and Milwaukee-based Northwestern…

Mixed-Use ‘Parc Residences’ Undergoes Construction at 3411 N. Federal Highway in Oakland Park

The former site of a strip club could find new life as Parc Residences, a seven-story residential building in Oakland Park. Our sources indicate that local developer Newrock Partners recently secured a $60 million loan that would go toward the construction of 165 apartments. The South Florida Business Journal notes that communal amenities at the mid-rise complex…

Construction loans keep flowing: Newrock, Brickbox land $60M to build 165-unit Oakland Park rental project

Newrock Partners and Brickbox Development landed a $60 million loan to build apartments in Oakland Park, as South Florida continues to defy a financing slowdown that’s gripping other U.S. markets. New York-based S3 Capital Partners provided the construction loan for the seven-story, 165-unit project planned at 3411 North Federal Highway, according to the lender’s news release.

L+R Hotels’ $22M loan on Fort Lauderdale Marriott enters special servicing

A $22.4 million loan on the Fort Lauderdale Marriott North entered special servicing, according to data from Morningstar Credit, further evidence of South Florida commercial property distress. The loan on the 315-key hotel at 6650 North Andrews Avenue was put into special servicing late last month due to a Dec. 1 maturity that looms, as the property’s net cash flow has…

ShopOne drops $36M on Publix-anchored Tamarac shopping center, amid retail deal uptick

ShopOne Centers REIT is laying down $36.4 million for a Publix-anchored shopping center in Tamarac, as retail deals continue to flow across South Florida. New York-based ShopOne bought the one-story Midway Plaza at 5701-5881 North University Drive from Beachwood, Ohio-based Site Centers, according to records and real estate database Vizzda. Completed in 1986…

Kolter drops $22M for Delray Beach dev site, amid its South Florida resi construction spree

Kolter Group scooped up an asphalt paving business’s headquarters in Delray Beach for $21.9 million as a potential development site. Delray Beach-based Kolter bought the 12.3-acre site at 2101 South Congress Avenue from George T. Elmore, trustee of the George T. Elmore Trust, according to records and real estate database Vizzda. The buyer took out $18 million in seller…

Industrial Complex ‘Bedner Oaks Commerce’ Proposed for West of State Road 7 in Palm Beach County

The Palm Beach Zoning Commission will consider plans regarding “Bedner Oaks Commerce,” an industrial complex proposed on a swath of agricultural land. The multi-million-dollar venture would occupy a nine- and five-acre site currently owned by Bedner’s Farms. The popular farmer’s market would remain on the site. According to the South Florida Business Journal…

321-Unit ‘Soleste Palm Station’ Planned for 2026 Completion at 520 N Rosemary Avenue in West Palm Beach

South Miami-based Estate Cos. recently secured a $72.5 million construction loan for “Soleste Palm Station,” a luxury housing development in West Palm Beach. Initially, per the developer’s website, construction was intended to start on the mid-rise complex in the third quarter of 2022. Now, new developments suggest that groundbreaking could happen later this year…

Estate lands $73M construction loan for West Palm rental complex, amid record multifamily pipeline

As South Florida is experiencing a near-record multifamily construction pipeline, Estate Companies scored a $73M loan to build a 321-unit complex in downtown West Palm Beach. Estate Companies landed a $72.5 million construction loan for a 321-unit apartment complex in downtown West Palm Beach. The financing for the planned complex comes as South Florida…

Related, BH under contract to buy waterfront West Palm Beach dev site

The Pérez family’s Related Group and the Toledanos’ BH Group are teaming up again to acquire a waterfront development site in West Palm Beach, The Real Deal has learned. Related and BH are in contract to acquire the property at 2001 North Flagler Drive for more than $30 million, according to sources. The developers plan a luxury condo project on the 0.8-acre site. Isaac Toledano…

Värde, Unity Medical partner up for West Palm Gardens office acquisition

Värde Partners and Unity Medical Properties are partnering up to acquire a medical office building in Palm Beach Gardens. An affiliate of Värde, a Minneapolis-based global investment firm, and Unity, a Monterey, California-based medical office real estate investment firm, paid $14.5 million for Laser and Surgery Center of the Palm Beaches. The joint venture also obtained $8.7 million…

One Less Headache for Small Businesses as SBA Moves Aim to Make Loan Programs More User Friendly

The American economy has slowly been rebounding from a tumultuous period. Between the Federal Reserve fending off inflation by hiking interest rates 11 times between March 2022 and July 2023, five prominent banks collapsing in 2023, and a debt ceiling deal narrowly passing in May 2023, several events powerfully altered the U.S. financial market.

Office Loan Maturity Monitor: Mid-Year Update and a Peek at Future Maturities

Highlights: A total of $1,072 million across 27 CMBS office loans reached fully extended maturity in June with the payoff rate of 31.5%.A $500 million loan secured by the Bloomberg HQ was extended despite strong characteristicsLoan size continues to be a significant factor in whether or not a loan pays off$1,075 million loan secured by 280 Park Avenue was extended from September…

Video: MBA Head of Commercial Real Estate Research Jamie Woodwell Provides Commercial Mortgage and Lending Updates

In a recent episode of America’s Commercial Real Estate Show, the show host provided an in-depth look at the current state of the commercial real estate mortgage market, focusing on lending, interest rates, and the future of the industry. The episode featured Jamie Woodwell, Head of Commercial Real Estate Research at the Mortgage Bankers Association (MBA), who…

How agency lending impacts affordable housing

Fannie Mae and Freddie Mac have helped to create a more stable and affordable housing market in America for more than 50 years. “The agencies were created to provide liquidity to the housing markets, when and where it’s needed most—during times of economic stress and for markets and product types that traditional lenders may shy away from,” said Greg Rice, Senior Commercial…

 

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August 1, 2024

Video: MBA Head of Commercial Real Estate Research Jamie Woodwell Provides Commercial Mortgage and Lending Updates

In a recent episode of America’s Commercial Real Estate Show, the show host provided an in-depth look at the current state of the commercial real estate mortgage market, focusing on lending, interest rates, and the future of the industry. The episode featured Jamie Woodwell, Head of Commercial Real Estate Research at the Mortgage Bankers Association (MBA), who shared valuable insights and data-driven analysis. It should be noted that this discussion was national in scope, thus observations can apply less to Miami or other South Florida markets.

Market Overview and Lending Activity

The show host and Woodwell began by addressing the current logjam in mortgage originations and sales transactions. Woodwell noted that both sales and origination activities were down about 50% in 2023 compared to 2022. While some capital sources, like the banks, have pulled back, others, such as the CMBS (commercial mortgage-backed securities) market and investor-driven lenders, have shown increased activity. This divergence indicates that while capital is available, it is being deployed selectively based on current rates and property values.

Interest Rates and Market Uncertainty

Interest rates remain a critical factor in the commercial real estate market. Woodwell discussed the varying forecasts from members of the Federal Open Market Committee (FOMC) regarding the direction of short-term interest rates. The consensus within the FED is split, with some expecting rates to stay the same, while others predict one or two rate cuts. This uncertainty has led many market participants to adopt a ‘wait and see’ approach, focusing on current market conditions rather than speculative future rates.

Delinquency and Distress in the Office Market

A significant portion of the discussion centered on the increasing delinquency rates, especially in the office sector. According to Woodwell, office property delinquencies have risen to 6.5% as of the first quarter, reflecting broader market stress caused by rising interest rates and uncertain property values. The upcoming maturity of $930 billion in loans in 2024, a substantial increase from previous years, adds another layer of complexity, as many of these loans were extended from 2023.

Regulatory Environment and Lender Strategies

Regulatory scrutiny remains high, with regulators focusing on ensuring banks manage their commercial real estate portfolios prudently. Woodwell highlighted that larger banks have started taking more significant charge-offs and setting aside more reserves for potential losses, indicating a proactive approach to managing risk. Smaller banks, however, have different exposure levels and asset types, which might explain their slower pace in recognizing losses.

Strategic Advice for Commercial Lenders and Borrowers

The episode concluded with practical advice for both lenders and borrowers. For lenders, Woodwell emphasized the importance of building strong relationships and taking advantage of the current market to make quality loans. For borrowers, he advised staying grounded in the present market conditions and making decisions based on the current landscape rather than past expectations or future speculations.

The show host nicely summed up the episode with a poignant metaphor: making decisions by looking through the windshield rather than the rearview mirror, emphasizing the need for forward-thinking in a dynamic market environment.

Final Thoughts

The insights from this episode of America’s Commercial Real Estate Show underscore the complexity and dynamism of the commercial real estate market. As lenders and borrowers navigate these challenging times, the emphasis on current market conditions, regulatory guidance, and strategic decision-making will be crucial for success. The full episode, packed with detailed analysis and expert opinions, serves as a valuable resource for anyone involved in the commercial real estate industry.

One way of considering the impact of borrowing costs / interest rate changes is to consider their impact on borrowing power. This is addressed in a prior post: Chart; Diminished Small Business CRE Buying Power Given Higher Interest Rates.

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Financing
July 29, 2024

Miami Commercial Real Estate News July 24, 2024: 830 Brickell Snags $565M Refi; Citadel Submits Supertall Site Plan; More…

Construction Starts on Brownsville Transit Village’s Fifth Phase at 5255 N.W. 29th Avenue in Metro Miami

On Monday, July 22nd, Miami-Dade County officials celebrated the groundbreaking of Brownsville Transit Village’s fifth phase. Currently, the affordable housing development offers 401 apartments, along with a 660-spot parking garage and 6,400 square feet of retail. The fifth phase will add an additional 120 homes targeted at those earning 30 percent to 80 percent…

Contractor Hired To Build 56-Story ‘Architectural Marvel’ Villa Miami, Groundbreaking Soon

The developers planning the Villa Miami tower have hired a general contractor. Moss Construction will build the 56-story, 650-foot-tall “architectural marvel,” the developers said. Groundbreaking is planned for this summer. Villa Miami will feature a distinctive copper color-cladded exoskeletal design that “promises to make it an iconic tower.” “Villa Miami is an elegantly…”

Casa Forma Developer Advocating For Omni Community Redevelopment Agency Extension

The developer planning Casa Forma says an extension of the Omni Community Redevelopment Agency will help the project to proceed, according to the SFBJ. Casa Forma is planned to include 1,441 residential units, 143,328 square feet of office, 7,959 square feet of retail, and 1,532 parking spaces. The tower would rise 55 stories, or 650 feet. It would be developed by Crescent Heights…

830 Brickell office tower lands $565M perm loan, among South Florida’s biggest refinancings ever

The office tower 830 Brickell scored a $565 million loan from an Elliott Investment Management-backed lender, marking one of South Florida’s biggest refinancings ever. Vlad Doronin’s OKO Group and Cain International are developing the 57-story tower at 830 Brickell Plaza in Miami. The project, the first new standalone office tower in the Brickell Financial District in the past…

Second Meeting Scheduled To Discuss City-County Conflict Over Rapid Transit Zoning

Miami has issued notice of another joint public meeting to discuss a conflict over Miami-Dade’s Rapid Transit zoning. The first public joint meeting to discuss the conflict took place in March. Here’s what is planned at the new meeting, according to the agenda: A discussion, pursuant to the Florida governmental conflict Resolution act procedures of Chapter 164….

342-Unit Luxury Apartment Development Reaches Completion On The Miami River

Remi on the River has reached completion. The eight-story building includes 342 luxury apartments, ranging from 465 to 1,334 square feet. Remi is the second phase of the development. The first phase, known as Waterline, includes 346 apartments, which were fully leased within months of opening. Mast Capital and AEW are the developers. Corwil is the architect.

Mast Capital, AEW Complete 342-Unit Remi on the River Apartments in Miami

Mast Capital and AEW have completed Remi on the River, a 342-unit apartment community located at 999 N.W. 7th St. in Miami’s River District. The eight-story property features 400 feet of frontage along the Miami River, as well as studio, one-, two- and three-bedroom apartments spanning from 465 to 1,334 square feet in size. Monthly rental rates range from $2,171 to $4,897…

Lender sues to foreclose on Bay Harbor Islands condo site

An affiliate of Allure Development Group is being sued for foreclosure over a stalled condo development in Bay Harbor Islands. Saluda Grade Alternative Mortgage Trust 2023-BC3 sued BHI The Club 2 LLC over the remaining $10.2 million unpaid balance on a $16.5 million loan, according to records and real estate database Vizzda. The loan backs the development site where…

Merrick Parc Phase II wins OK for 225 residences, commercial

The second phase of what will be dual mixed-use residential towers in Miami’s southwest area cleared the city’s Urban Development Review Board with a recommended approval for Merrick Parc Phase II and a suggestion to consider replacing some palms in the landscaping plan with shade trees. This second phase will see construction of a 20-story mixed-use building…

County’s first three-story public library taking shape for branch in Downtown Doral

Downtown Doral is set to welcome the new Doral Branch Library for patrons to use and enjoy. The three-story library, at 5360 NW 84th Ave., will include books, technology and a terrace. It is expected to open its doors in June 2025. The library is rising across from Doral’s City Hall, near schools and retail stores, said Ray Baker, director of the Miami-Dade Public Library System.

Doral gaining during nation’s commercial realty dip

Doral’s commercial real estate defies national trends and continues to showcase high demand. “Viewing commercial real estate overall, even on a national scale,” said Matthew Rotolante, president and broker at Lee and Associates South Florida, “I would say Miami, Doral included… is somewhat resilient in the face of some of the trends that are taking place on a national scale.”

Grove Village, OK’d in 2011, finally moving ahead

A sweeping development destined to transform about 12 acres in the West Grove is finally moving forward with a city board’s unanimous approval. Grove Village, a six-block mixed-use residential and commercial project, has been in the works for more than a decade. The original Grove Village Major Use Special Permit (MUSP) was approved by the City of Miami in 2011.

New Central Park in Doral set to open

Inauguration plans are set for the east portion of the Doral Central Park, according to city officials. As part of the $150 million Doral Parks General Obligation Bond, the flagship project at 3000 NW 87th Ave. will be opening its first half on Aug. 24 with a community event. The project’s opening includes the amphitheater, skate park, playgrounds, multipurpose fields, a boardwalk…

Rodney Harris: Miami Gardens mayor cites taxable value rise and stability

Since becoming the mayor of Miami Gardens in 2020, Rodney Harris’ biggest motivation to build the city a thriving, productive place to live, worship, work and play has been the commitment to residents who initially placed him in public service. In November 2012, he was elected a councilman and in August 2016, he was re-elected for a second term. Later in his career as a public servant…

Nearly 600 Apartments Now Open At New 1.5M Square Foot Overtown Complex

In Overtown, the residential component at Sawyer’s Walk (formerly known as Block 55) has officialy opened. Developer SG Holdings, a partnership among Swerdlow Group, SJM Partners, and Alben Duffie, announced the opening this morning. “We’re pleased to announce the highly anticipated opening of nearly 600 residences at Sawyer’s Walk, a tremendous milestone for the city…

FAA Approves Midtown Miami’s Tallest Tower, Midtown One

The Federal Aviation Administration has completed a review of the proposed Midtown One tower, which is set to become the tallest in the neighborhood. According to a July 15 determination letter, the building’s proposed height of 610 feet above ground level and 623 feet above mean sea level does not pose a hazard to air navigation. Midtown 1 is planned to include: 329 residential units…

Miami Review Board Rejects Tall Towers on Small Lots

Miami’s Urban Development Review Board (UDRB) has rejected two projects this month to build really tall towers on small lots, calling both projects “out of scale.” Under Miami’s zoning laws, the board is required to review any project proposal that exceeds 200K SF and base its recommendations to the city planning director on the project’s “urban quality, compatibility and contribution…

SJC Ventures, Nuveen to Develop Whole Foods-Anchored Shopping Center in Doral

Atlanta-based SJC Ventures and Nuveen Real Estate have formed a partnership to develop Doral Marketplace, a new shopping center in suburban Miami that will be anchored by Whole Foods Market. The partnership recently purchased a 10-acre site at the southwest corner of NW 41st Street and NW 107th Avenue for the development, which is set to break ground this fall. The site is…

SJC, Nuveen drop $32M for Doral dev site, plan Whole Foods-anchored mixed-use project

SJC Ventures and Nuveen Real Estate scooped up a development site in Doral for $32 million, with plans for a Whole Foods Market-anchored project. Atlanta-based SJC and New York-based Nuveen bought the 10-acre vacant property on the southwest corner of Northwest 41st Street and Northwest 107th Avenue from Bridge Industrial, according to an SJC and Bridge…

Revised Plans and New Renderings Revealed for 1 Southside Park in Brickell

JDS Development Group has filed revised plans and renderings with Miami-Dade County for Brickell’s massive 1 Southside Park, currently under construction. Designed by SHoP Architects with ODP Architecture & Design as the architect of record, the project includes a residential component known as Mercedes Benz Places. The proposed changes to the project…

“Way out of scale”: Miami board rejects SB, Hazelton’s 55-story Edgewater tower

Amid intense neighborhood opposition against a proposal for a 55-story tower in Edgewater, a Miami project review board rejected the plan by SB Development and Hazelton Capital Group. The Urban Development Review Board voted 6-0 on Wednesday to recommend denial of the 463-unit project proposed for a 0.3-acre lot 419 Northeast 19th Street, between the Cité on the Bay…

Brickell Citadel HQ Tower Moves To Pre-Application Phase, With Public Baywalk

An affiliate of Citadel has filed a pre-application with Miami-Dade County for a new mixed-use tower in Brickell. Previous reports have said the tower could end up being a supertall, but the building’s overall size or height was not listed in the new filing. The purpose of the pre-application is to review the approval process and discuss filing requirements. According to the new…

Billionaire Ken Griffin submits site plan for mixed-use Miami supertall

Billionaire Ken Griffin is moving forward with plans to develop a $1 billion-plus mixed-use tower in Miami’s Brickell Financial District. Griffin’s attorney, Neisen Kasdin, this week submitted a pre-application for the sites at 1201 Brickell Bay Drive, 1221 Brickell Avenue and 1250-1260 Brickell Bay Drive. Griffin, founder and CEO of his hedge fund Citadel and owner…

Work Underway At Excel Miami Site, Where 424 Residential Units Planned

Site work is now underway at the Excel Miami site, according to Ryan RC Rea. The city issued a site work permit for the property on June 19, and a tree permit on June 25. The master permit to build the new tower and a phased vertical permit are both still in the review process. Excel Miami is planned to rise 24 stories, and include: 424 residential units (of which 216 will be micro-units)…

Block Capital buys into Diesel Wynwood project, plans relaunch

The Miculitzki family’s Block Capital Group bought into Diesel Wynwood, Bel Invest Group’s planned branded condominium project in the trendy Miami neighborhood, The Real Deal has learned. Wynwood-based Block Capital is taking the lead on the development, according to sources. Bel-Invest Group, led by CEO Maximilian Beltrame, remains a partner. Block Capital…

650-Foot Cranes Approved For Lofty Brickell Construction Site

Several cranes have just been approved for the Lofty Brickell construction site. According to a determination issued by the Federal Aviation Administration on July 17, the temporary cranes can rise 650 feet above ground, or 653 feet above sea level. Lofty Brickell is planned as a 44-story building with 364 residential units allowing short-term rentals. The permanent height…

Master Building Permit Issued for 75-Story ‘Baccarat Residences Miami’

A master building permit has been issued for Baccarat Residences Miami, a luxury condominium tower developed by Related Group and GTIS Partners and designed by Arquitectónica. Miami’s Building Department issued the permit to allow for the continued development of the 848-foot-tall skyscraper, under construction at 99 Southeast 5th Street and expected to be completed in early…

Master Construction Permit Issued At 75-Story Baccarat Residences Construction Site

A master construction permit was issued this week for Brickell’s 75-story Baccarat Residences tower. Records show the master permit was issued on July 15, with John Moriarty the contractor. It replaces a phased vertical permit. Baccarat is one of the tallest towers to ever go vertical in Miami, with a planned height of 75 stories, or 848 feet above ground and 852 feet above sea level.

Transit-Oriented Affordable Community Breaks Ground in Miami

The Miami-Dade County Department of Transportation and Public Works, Department of Housing and Urban Development and the County’s Department Public Housing and Community Development have broken ground on Phase V of Brownsville Transit Village, a 120-unit affordable development in Miami. Project partners include Atlantic Pacific Cos., Mount Sinai Community…

Developer Files Pre-Application for ‘Naranja Grove Apartments’ Located at 23435 SW 127th Ave in Homestead

An affiliate of Onyx Housing Group hopes to get approval for a multi-family housing development on farmland in Miami-Dade County. The Naranja Grove Apartments would require 318,108 square feet of new construction, rising eight stories and comprising 285 apartments. According to the South Florida Business Journal, the one-bedroom to three-bedroom homes…

Miami’s Watson Island Development Proposals Reviewed by Climate Resilience Committee

The City of Miami Climate Resilience Committee recently reviewed two proposals concerning developing and using City-owned waterfront property on Watson Island. These proposals were presented for evaluation due to their deviation from previous plans and now include updated requests and public benefits. The following steps involve potential approval by the Miami City…

454-Unit, 28-Story Tower Proposed Under Live Local Act in Little Haiti area of Miami

Developers 8038 and 165 Owner LLC, an affiliate of New York- and Miami-based Infinity Collective, and Miami-based MVW Partners, have proposed a residential development in Miami’s Little Haiti neighborhood under the state’s Live Local Act. The city’s Urban Development Review Board is currently reviewing the application for the 2.17-acre site at 165 Northeast 80th Ter…

Miami International Airport Approves Cargo Facility That Will Move It Up Ranks Of World’s Busiest

Miami International Airport is already the busiest international cargo airport in the U.S., and one of the busiest in the world. Now, a new vertical cargo facility has been approved that will significantly increase airport cargo volumes. Miami-Dade County commissioners voted this week to approve a deal with private developers to build the $400m Vertically Integrated Cargo…

372-Unit Residential Development Planned In Overtown

Plans have been announced for a 22-story development in Overtown called One West Twelve Residences. One West Twelve Residences will include 372 residential units, delivered finished and furnished and allowing short-term rentals. PMG, Lion Development Group, and LNDMRK are the developers. Cube 3 is the architect.  Numbers of pics are displayed…

H&R REIT, Urban-X Receive Approval for 28-Story MidRiverVu Apartment Tower in Miami

Canada-based H&R REIT and Miami-based Urban-X Group have received approval from the City of Miami’s Planning, Zoning and Appeals Board for MidRiverVu, a 28-story apartment tower. The 475-unit, market-rate community will be situated on a 2-acre site at 1411 N.W. North River Drive in Miami’s MidRiver district, which is west of the downtown area. The property represents…

Tatiana Pino now owns Century Homebuilders after Sergio Pino’s death, her attorney says

Developer Sergio Pino’s death by suicide on Tuesday — as federal agents descended on his home to arrest him — makes his estranged wife, Tatiana Pino, the sole owner of their development firm, Century Homebuilders Group, according to her attorney. And just one day after Sergio’s death, his brother submitted a will, kicking off the probate process tied to the distribution…

BH, Prime submit plans for 15-story hotel in Hallandale Beach

BH Group and Prime Group now plan a hotel on a Hallandale Beach development site where the joint venture previously envisioned a condo-hotel. The joint venture recently submitted a site plan to the city of Hallandale Beach for a 15-story building with 246 hotel rooms, 281 parking spaces and a public plaza at 804 South Federal Highway, according to city records. The project…

Investors scoop up dev site near Pompano Beach casino for $29M, amid near record South Florida multifamily pipeline

Atlantic Residential and Northwestern Mutual Life Insurance scooped up a development site for $29.1 million, to build apartments near Harrah’s Pompano Beach Casino. Their purchase comes amid a near record construction pipeline of multifamily units in South Florida, which has slowed leasing and calmed rent growth. Atlanta-based Atlantic and Milwaukee-based Northwestern…

Prestige scores $20M construction loan for Davie workforce housing project

Prestige Companies can move ahead with a workforce housing project in Davie after landing a $20 million construction loan. A Boca Raton-based entity, Mint 12 Income 3, provided the financing for Pioneer Lofts, a planned garden-style complex with 105 apartments at 6325 Southwest 37th Street, records show. Designed by Hialeah-based architect Albert Gonzalez, Pioneer Lofts…

Plans Filed for New 2-Story Padel and Pickleball Facility at 4000 N. Federal Highway in Fort Lauderdale

A two-story padel and indoor pickleball court facility has been proposed to rise along Federal Highway in Fort Lauderdale. The city’s Development Review Committee is set to review plans for the 1.01-acre site at 4000 and 4008 North Federal Highway on July 23. Padel Broward LLC, managed by Arvinder Bajaj of AB Diversified of Plantation, Vicki Tofte and Vilic Novovic…

Construction Completes on BSO’s New Research, Development, and Training Center in Fort Lauderdale

ANF has completed construction of the new Broward Sheriff’s Office (BSO) Research, Development, and Training Center (R.D.T.C.) in Fort Lauderdale, Florida, serving as the construction manager for the project with Saltz Michelson Architects and RDG Planning & Design as the architects. The building is designed to meet Class “A” Office Building standards. The BSO R.D.T.C. is…

Fortress takes back Fort Lauderdale marina, RV park in $86M deed in lieu of foreclosure

The investors in a Fort Lauderdale RV park and marina surrendered the property to the lender through a deed in lieu of foreclosure valued at $85.8 million. Gary Cioffi and Christopher Hein handed back the keys to the 20.2-acre Yacht Haven Park & Marina at 2295 and 2323 West State Road 84 to Fortress Investment Group, according to records and real estate database…

Zaragon sells Plantation office building for $16M, a 6% discount from 2018

Zaragon sold an office building in Plantation for $15.7 million, a 5.5 percent discount from the firm’s purchase price six years ago. The deal comes as distress continues to trickle across South Florida office properties. The tri-county region experienced a leasing frenzy over the past four years, but office landlords haven’t been spared from the sting of higher interest rates and property…

Seaside Builders Proposes ‘The Tropics of Delray’ for 2400 and 2410 N. Federal Highway in Delray Beach

Locally based Seaside Builders has proposed a high-end housing development in Delray Beach. The Tropics of Delray would offer a total of 34 units: 16 condos in a four-story building and 18 townhomes divided between three six-story buildings. According to the South Florida Business Journal, the condos would measure 2,405 to 3,690 square feet, while the townhomes…

Parking Lot Could Serve as 289-Unit Multifamily at 900 Broken Sound Parkway Northwest in Boca Raton

Locally based 900 Broken Sound Acquisition Co. has filed an application with Boca Raton city officials for the construction of a multi-family housing development. If approved, the venture would require 334,295 square feet of new construction and offer 289 units. Per the South Florida Business Journal, about 10 percent (29 homes) would be reserved as affordable housing…

Singaporean REIT sells Boca Raton office building for $82M –– an 18% discount from 2021

A Singaporean real estate investment trust sold the One Town Center office building in Boca Raton for $82 million, marking a 17.6 percent discount from its purchase price three years ago. Prime US REIT, which is publicly traded on the Singapore Exchange, sold the 10-story, 201,000-square-foot building and attached five-story garage at 1 Town Center Road to Gatsby Enterprises…

Asana sells West Palm Beach’s repurposed warehouse district for $20M, as South Florida retail deals flow

Asana Partners sold a portfolio of West Palm Beach warehouses repurposed into retail, restaurant and office space for $19.5 million. The deal comes as such South Florida commercial trades continue, despite higher interest rates. Charlotte, North Carolina-based Asana sold seven one-story buildings at 1300, 1400, 1500 and 1220-1250 Elizabeth Avenue, as well as 1615 Clare Avenue…

Foreclosure Suit Filed Against Developer Of 41-Acre Palm Beach Mixed-Use Project

Brian Tuttle’s plans to create a sprawling mixed-use community in Royal Palm Beach hit what he described as “a little bump in the road” this week after a foreclosure action was filed. A 41-acre site inside the Tuttle Royale community is facing foreclosure after Tuttle Land Investments stopped making payments on three mortgages totaling $38M. The short-term debt originated…

Related joint venture submits plans for Riviera Beach mixed-use project

Related Group, BH Group and Tezral Partners submitted plans for a mixed-use multifamily development in Riviera Beach. The joint venture plans 418 apartments across a 20-story, two-tower project at 1300 Broadway, just north of West Palm Beach. Miami Lakes-based Cohen Freedman Encinosa & Associates Architects is designing the buildings, according to a copy of the preliminary…

Kolter, Perko win Jupiter Island zoning amendment, allowing for condo project

The Kolter Group and Phil Perko won a zoning amendment that paves the way for a Jupiter Island condo project. The Palm Beach County commission voted unanimously Wednesday at its zoning hearing to allow property owners to apply for waivers for setbacks in the redevelopment of existing coastal multifamily buildings. The zoning amendment applies to buildings over 35 feet…

Video: Marathon CEO Bruce Richards on Rate Cut Possibilities, Commercial Real Estate, Election Effects, more…

In a recent conversation on Bloomberg Television, Bruce Richards, CEO, Chairman, and Co-Founder of Marathon Asset Management, delved into critical financial topics. The discussion covered a range of subjects, from U.S. economic trends to central bank policies, offering deep insights into the financial landscape and including potential effects on commercial real estate…

Sentiment among CRE finance executives nationally drops again in new survey

Higher interest rates continue to cast a pall over commercial real estate, and the latest Board of Governors Sentiment Index from the CRE Finance Council (CREFC) reflects the gloom. The second quarter edition of the index dropped 3 percentage points from the first three months of the year to a reading of 105.4. The decrease reflects growing caution among more than 50…

Elevated Completions Continue to Weigh on USA Multifamily Rent Growth

Highlights: After a banner year for housing completions in 2023, both single-family and multifamily completions are poised for another strong year in 2024. However, elevated multifamily completions coupled with rising operating expenses have weakened profit margins for multifamily landlords. Consequently, as of the second quarter of 2024, Moody’s CRE forecast for asking…

Property Typecast: The self-storage industry shifts from surge to stability

While the industrial sector often gets the most recognition for being a pandemic-era darling, the self-storage industry has also enjoyed the benefits from changes in socioeconomic conditions that have bolstered demand for flexible storage solutions. As the pandemic took effect in early 2020, lockdowns and social distancing measures constrained consumers’ ability to spend money…

Medical Office Building Tenants Pay a Premium for These Markets

Medical office tenants seek densely-populated markets, said Jason Muss, president of Muss Development. Across the nation, demand for medical office buildings is persistent. As the population ages and the youngest of the Baby Boomers enter their 60s, the need for in-person health care is increasingly critical. But some markets in the U.S. are experiencing more demand than others…

Prologis Says Demand For Data Centers Is Boosting The Industrial Property Outlook Nationally

Prologis raised its annual earnings outlook despite a steep decline in revenue in the second quarter, saying that a dwindling pipeline of new warehouses and growing demand for artificial intelligence infrastructure should boost profitability. San Francisco-based Prologis, the world’s largest industrial property company, on Wednesday posted earnings attributable to common shareholders…

CNBC Ranks Florida’s Economy As The Best In U.S. In 2024

Florida has the best economy in the U.S. in 2024, according to a new CNBC ranking. The state added 240,000 new jobs last year, an increase of 2.5%, the report said. GDP increased 5% in 2023 to 1.28 trillion, among the fastest nationwide. New business applications grew even faster, up 9%. Florida’s budget and housing markets are also said to be balanced. The news network…

The Fed: Job openings-to-unemployment ratio; labor markets are in better balance

In the most recent FOMC press conference, on June 12, Chair Powell noted that the labor market “has come into better balance, with continued strong job gains and a low unemployment rate.” One measure of labor market tightness that illustrates this is the job openings-to-unemployment ratio, shown in the FRED graph above. The ratio is taken by dividing the total number…

Bank OZK Prepares For ‘Credit Deterioration’ While Growing CRE Loan Book

Bank OZK posted growing net charge-offs in the second quarter as its pool of nonperforming loans grew to $81M, its highest volume since at least 2009. But the Arkansas-based bank, which reported its second-quarter earnings on Wednesday and held its earnings call Thursday morning, continues to aggressively expand its real estate lending portfolio, the majority of which…

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July 24, 2024

Video: Marathon Asset Management CEO Bruce Richards on Rate Cut Possibilities, Commercial Real Estate, Election Effects, more…

In a recent conversation on Bloomberg Television, Bruce Richards, CEO, Chairman, and Co-Founder of Marathon Asset Management, delved into critical financial topics. The discussion covered a range of subjects, from U.S. economic trends to central bank policies, offering deep insights into the financial landscape and including potential effects on commercial real estate nationally.

Central Banking and Rate Cuts: A Strategic Outlook

Richards began by addressing the U.S. Federal Reserve (Fed) and its monetary policy. Market anticipation was leaning towards three rate cuts this year. Richards, however, held a more conservative view, predicting two rate cuts, with September being a probable date for the first adjustment. This perspective also encompassed the European Central Bank (ECB) and the Bank of England (BoE), both expected to reduce rates by 25 basis points each.

Richards emphasized the beneficial impact of lower rates on regional banks, suggesting that a positive yield curve would help lower borrowing costs, enhancing profitability. However, he cautioned that the commercial real estate sector might not experience immediate relief. The substantial debt load scheduled for refinancing in 2024 and 2025 poses significant challenges, despite potential financing cost reductions.

The Complexities of Real Estate and Long-Term Implications

Richards highlighted that the real estate market’s recovery would be protracted, spanning two to three years. The term structure of interest rates, particularly the ten-year rates, plays a pivotal role in determining property valuations and cap rates. Globally, the sector faces trillions in potential property transfers and creditor adjustments, marking a gradual and complex recovery process.

Central Bank Policies and Their Impact on Real Estate

Richards began by addressing the anticipated rate cuts by the U.S. Federal Reserve (Fed), European Central Bank (ECB), and Bank of England (BoE). While markets are pricing in multiple rate cuts, Richards predicted a more measured approach, expecting two cuts with the first likely in September. He emphasized that these adjustments would be beneficial for regional banks by lowering borrowing costs, thereby improving their financial health.

However, the commercial real estate sector presents a different picture. Richards cautioned that despite potential reductions in financing costs, the sector faces significant challenges due to the massive debt load scheduled for refinancing in 2024 and 2025. This impending wave of debt refinancing could strain the market, as many loans extended during the pandemic are now coming due.

Debt Loads and Market Recovery: A Protracted Process

Richards highlighted the complexity of the commercial real estate market’s recovery. The term structure of interest rates, especially the ten-year rates, plays a crucial role in determining property valuations and cap rates. As financing costs come down incrementally, the real estate market will still need to navigate the substantial debt burdens. This process, Richards estimated, could take two to three years, reflecting the sector’s inherent complexity and the sheer volume of outstanding debt.

Transmission Mechanisms and Fiscal Policies: Lessons for Real Estate

The conversation also touched on the effectiveness of the Fed’s monetary policy transmission mechanisms. Richards pointed out that previous efforts were hindered by delayed rate hikes and continued quantitative easing. In addition, substantial fiscal spending in the U.S. counteracted the Fed’s tightening measures, complicating the policy’s impact on the real estate market. Furthermore, the fixed-rate mortgage market in the U.S. shielded homeowners from the effects of rising rates, thereby reducing the anticipated stress on the housing market.

Commercial Real Estate Investment Opportunities Amidst Market Challenges

Despite these challenges, Richards identified significant investment opportunities within the commercial real estate sector. He projected a gradual path for rate reductions, with central banks adopting a more measured approach. This scenario could create a favorable environment for private credit and credit markets, which have become vital in providing liquidity when traditional banks pull back.

Addressing Sector Criticisms: Transparency and Regulation

Richards also addressed criticisms of the private credit sector, particularly regarding its role in the commercial real estate market. He acknowledged concerns about complex deal structures and liquidity issues but emphasized the importance of transparency and proper disclosure to investors. Richards argued that while private credit operates outside traditional banking regulations, it remains transparent to its investors and regulated by appropriate authorities like the SEC.

Transmission Mechanisms and Fiscal Policies: Lessons from the Past

Discussing the Fed’s monetary policy transmission mechanisms, Richards pointed out that previous efforts were hampered by delayed rate hikes and continued quantitative easing. Fiscal spending, particularly in the U.S., counteracted the Fed’s tightening measures, complicating the policy’s effectiveness. Additionally, the fixed-rate mortgage market in the U.S. insulated homeowners from rising rates, further diminishing the policy’s impact.

Political Dynamics and Economic Policies: A Comparative Analysis

The conversation shifted to U.S. politics and its influence on economic policies. Richards noted the contrasting approaches of the Biden administration and the Trump administration regarding tax rates, trade, tariffs, and regulations. He suggested that markets might respond more favorably to a less regulated environment, such as under a Trump administration, potentially benefiting sectors like oil and gas.

Opportunities Amidst Market Shifts: A Strategic Focus

Richards identified investment opportunities in private credit and credit markets, despite potential rate cuts. He projected a gradual path for rate reductions, emphasizing a more measured approach by central banks. He also noted the potential for private credit markets to thrive, given their significant role in providing liquidity when traditional banks pull back.

Addressing Sector Criticisms: Transparency and Regulation

Responding to criticisms of the private credit sector, Richards defended its role in filling the gap left by traditional banks. He acknowledged concerns about complex deal structures and liquidity issues but emphasized the importance of transparency and proper disclosure to investors. Richards argued that while private credit operates outside traditional banking regulations, it remains transparent to its investors and regulated by appropriate authorities like the SEC.

Jamie Dimon’s Criticisms and Market Dynamics

Richards also responded to comments made by Jamie Dimon, CEO of JPMorgan Chase. Dimon had expressed concerns about the private credit market, suggesting that it might lack the same discipline as traditional banking in terms of marking assets to market. Richards interpreted Dimon’s remarks as a reflection of the competitive landscape, where private credit has taken a significant market share from traditional banks.

Richards praised Dimon as a brilliant banker and CEO but suggested that his comments might stem from a desire to reclaim some of the market share that private credit has captured. Richards argued that private credit has played a crucial role in stepping up when banks have pulled back, providing much-needed liquidity and supporting the economy. He emphasized that competition between traditional banks and private credit is healthy for the market.

Wrapping it Up

In conclusion, Bruce Richards provided a nuanced and insightful analysis of the current financial landscape, highlighting both opportunities and challenges. His perspectives on central bank policies, real estate dynamics, political influences, and the role of private credit offered a comprehensive view of the intricate web of factors shaping the market.

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Economy
July 23, 2024

Miami Commercial Real Estate News July 17, 2024: Office Vacancy Drops, Rent Increases; Doral Warehouse Trades for $17M; 1,000-Unit MF Near Miami River Up for Review; More…

Revised Plans & Renderings Submitted For Brickell’s Massive 1 Southside Park

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1,000-Unit Residential Project on Near Miami River Submitted To UDRB Review

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Sergio Pino dies by suicide during FBI home raid

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345-Unit Downtown Miami Tower Advances With Site Work, Vertical Permit Filings

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40-Story Flow Miami Worldcenter 2 Nearing Completion

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Plans Submitted For Gamla Health District With 224 Residential Units

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55-Story Edgewater Tower Scheduled For UDRB Hearing

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Looser ban on subsidies for vast American Dream Mall advances

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Major Watson Island developments’ leases advance

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New Deliveries Begin To Test Miami’s Office Success Story

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Miami International Airport, PortMiami plan cutting-edge trade amenity

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Michael Lewis: Ignorance of the facts is no excuse to alter mall subsidy ban

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Planned residences across from Douglas Park get thumbs down

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UDRB to Review Plans for 39-Story Residential Tower at 2534 North Miami Avenue in Wynwood

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454-Unit Little River Tower Proposed Under Live Local Act

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California Firm Sells Doral Warehouse For $17 Million

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Proposed 55-Story Tower at 419 Northeast 19th Street in Miami Returns to UDRB for Review

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New Industrial Supply Attracts Steady Demand In Miami

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Construction to Start on 14 Roc Condo in 2025 at 125 NE 14th Street in Miami

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Mega-Project Planned on City-Owned Land in North Miami

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South Florida retail rents, vacancies remain stable in second quarter

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‘Naranja Grand’ Affordable Housing Community Tops Off In Southern Miami-Dade County

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Demolition Permit Issued for 1401 Brickell Avenue, Paving Way for 40-Story ‘Santander Tower’

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SB, Hazelton revive controversial 55-story Edgewater resi tower

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Office asking rents rose across South Florida in second quarter

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Office Vacancy Drops as Rents Increase in Miami

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Brightline Details How It Will Increase Seat Capacity 75% To Meet Demand

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Developer Launches 32-Story Downtown Miami Condo 14 ROC, Completion 2027

GFO Investments is launching sales for a new condo tower called 14 ROC. The 32-story development will include 283 units allowing flexible rentals. Units will range from 410 to 964 square feet, with prices starting at $495,000. RSP Architects is designing the tower. Interiors are by March and White Design. Landscape is by Urban Robot Associates. Cervera Real Estate…

Demolition Permit Issued At 1401 Brickell Site Where 765-Foot Tower Planned

A demolition permit has been issued for the 1401 Brickell property. A new tower is planned on the property, but there doesn’t appear to be a new construction permit filed for it yet. According to the newly issued permit, total demolition of 236,877 square feet is planned, at an estimated cost of $5,890,000. The BG Group is listed as the contractor. The demolition permit was first applied…

North Miami approves Redwood’s 2,200-unit apartment project at Claude Pepper Park, adjacent land

Redwood Dev Co scored approval for its 2,193-unit apartment complex in North Miami, marking one of the largest projects on tap in the western side of the city. The North Miami City Council voted 4-0 to approve the development of eight 18-story buildings, as well as 121,500 square feet of commercial space and 4,114 parking spaces. The project would rise on a 27.7-acre site…

Dryrun Demolition Permit Filed At Brickell Site Where 90-Story 1,049′ Tower Planned

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Fortune scores $36M predevelopment loan for Casa Tua condo tower

Edgardo Defortuna’s Fortune International Group closed on the development site of its planned Ora by Casa Tua mixed-use condo tower and secured financing for the project. Brickell-based Fortune acquired the garage and land at 1210 Brickell Avenue in Miami in a deal that values the site at about $70 million. The firm already owned the air rights, so it paid about $30 million for the land…

Miami Has Become One Of Commercial Real Estate’s Most Important Job Markets

The days of lockdowns and Zoom happy hours may be over, but the pandemic’s long tail has created permanent shifts in real estate demand, boosting Miami’s profile as the firms that opened offices in Miami begin to settle in and expand. The arrival of those out-of-state businesses has helped push Miami into a new echelon of American real estate job markets. The city captured 5.3%…

Industrial asking rents soar in Miami-Dade and Broward, stay flat in Palm Beach County

Warehouse landlords are still in the driver’s seat, as median asking rents soared for most of South Florida’s industrial market in the second quarter. Industrial landlords in Miami-Dade and Broward counties experienced rent growth of 9 percent and 17 percent, respectively, in the second quarter, compared to the same period of last year, according to a recent JLL report.

$69.9 Million Refinancing Secured for 4000 Ponce/The Collection in Coral Gables

Miami-based real estate development firm CMC Group has obtained a $69.9 million loan from City National Bank of Florida (CNB) for the refinancing of 4000 Ponce/The Collection, a nine-story Class-A mixed-use office and retail development in Coral Gables. Developed by CMC Group Founder Ugo Colombo in 2002, the Mediterranean-style building is also home to The Collection…

CMC Group Lands $70M Refi for Coral Gables Office Building

The 190,000-square-foot building also features The Collection, a luxury car dealership, along with 32,000 square feet of retail space. Image courtesy of CommercialEdge CMC Group has obtained $69.9 million in refinancing for 4000 Ponce, a 190,000-square-foot office building in Coral Gables, Fla., a Miami submarket, according to REBusinessOnline. City National Bank of Florida…

Ugo Colombo’s CMC scores $70M refinancing for Coral Gables mixed-use complex

Ugo Colombo’s CMC Group landed a $69.9 million refinancing for a Coral Gables mixed-use complex anchored by The Collection exotic car dealership. City National Bank of Florida provided the five-year, floating-rate loan to the CMC affiliate that owns 4000 Ponce at 200 Bird Road, a press release states. A JLL team led by Paul Stasaitis and Paul Adams arranged the loan on…

Lease roundup: Medical spa on tap at River Landing, a sun-protective clothing company moves HQ from Minneapolis to Wynwood

River Landing Shops & Residences, one of the largest completed projects on the Miami River, scored two new tenants. Famous Footwear will open in the third quarter in a 5,100-square-foot space, according to a River Landing news release and a spokesperson. ProsperIV, which offers IV therapy, vitamin injections and other health and wellness services, leased 1,000 square feet…

Structure Capital drops $19M for Cooper City plaza, as South Florida retail deals flow

Diversified Realty Development sold the majority of the retail space at the Shoppes at Monterra Commons in Cooper City for $18.5 million, as South Florida retail deals continue to flow. An entity led by Job and Rocio de Ojeda of Fort Lauderdale-based Structure Capital bought the buildings at 3500, 3700, 3800 and 3900 North University Drive from Deerfield Beach-based…

What’s Behind Miami’s Hot Studio Condo Market?

In recent years, the Miami condo market has seen a dramatic rise in studio apartments. Once a rarity, these compact living spaces are now one of the most sought-after commodities. As starting prices for new construction condos in the city continue to soar and units under $1 million are increasingly scarce, studio condos are becoming an attractive and affordable alternative. Maria Elena…

Wills, partners buy Frisbie’s Islamorada resort for $72M

Frisbie Group sold a resort in Islamorada in the Florida Keys to the Wills Companies and its partners for $72 million. The buyers plan to sell the 22 villas included within the oceanfront resort, called Islands of Islamorada, as single-family homes and maintain the eight-key hotel, according to a press release. The Wills Companies and its partners will continue to manage the individually…

Nuveen sells 197-unit apartment complex in Plantation for $49M –– a 5% discount from a decade ago

Nuveen Real Estate sold a 197-unit apartment complex in Plantation for $49.4 million, marking a 5 percent discount from the firm’s purchase price a decade ago. New York-based Clarion Partners bought The Manor in Plantation from New York-based Nuveen Real Estate, according to records and real estate database Vizzda. The deal breaks down to $250,508 per unit.

Pompano Beach Development Review Committee to Consider Plans for 303-Unit ‘Atlantic One’

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Supplements mogul Darielle Singerman cashes out of industrial building at Boca Raton’s Park of Broken Sound

Supplements mogul Darielle Singerman sold an industrial building at Boca Raton’s Park of Broken Sound for $18.7 million. An entity managed by Serge Abecassis in Boca Raton bought the 78,024-square-foot warehouse at 701 Park of Commerce Boulevard completed in 2001, records and real estate database Vizzda show. The buyer also obtained a $11.5 million mortgage…

399-Unit ‘Oculina’ Calls for 1.34 Million Square Feet of New Construction at 3700 Broadway in Riviera Beach

A long-closed Winn-Dixie in Riviera Beach could soon be replaced with two 25-story towers connected by a six-story podium. Oculina would comprise 1.34 million square feet of new construction, offering nearly 400 condos ranging from studio to three-bedroom condos. According to the South Florida Business Journal, the homes’ square footage would measure 1,550…

Ronny Finvarb sells 128-key Courtyard hotel in Jupiter for $21M

Developer Ronny Finvarb sold the Courtyard Palm Beach Jupiter hotel for $20.9 million, marking a continuing flow of hospitality deals in South Florida. An entity tied to JW Marriott Family Enterprises bought the four-story, 128-key hotel at 4800 Main Street from Miami-based Finvarb Group, according to records and real estate database Vizzda. The purchasing entity is led…

Steve Ross launches firm focused on West Palm investments, steps back from Related

Billionaire Steve Ross is now fully committed to South Florida. Following four years of hefty investments and development in Palm Beach County, mostly in West Palm Beach, Ross stepped back from New York-based Related Companies and carved out the firm’s Related Southeast division into a separate firm that he will lead. Related Southeast is now rebranded as Related Ross…

Brian Tuttle hit with $38M foreclosure on his Main Street mixed-use project in Royal Palm Beach

Developer Brian Tuttle was hit with a foreclosure tied to $38.4 million in loans for his planned Main Street mixed-use project in Royal Palm Beach. The lender of three loans issued in 2021 claims that Tuttle and his affiliates, through which he owns the Main Street development site, failed to pay the full principal and interest due when the mortgages matured in December…

Investors more positive about CRE market nationally environment than last quarter

Real estate investor sentiment is up by 16% quarter over quarter, according to a new report from RCN Capital. The nationwide lender, which specializes in investor loans, maintains an Investor Sentiment Index (ISI) jointly with CJ Patrick Company, tracking market outlook based on four questions in a quarterly survey. According to respondents to the summer iteration…

Yardi: Apartment performance nationally subdued but ‘encouraging’ in first half

Apartment performance was solid in June, contributing to a moderately positive first half of 2024 that Yardi Matrix described as “encouraging” given present market conditions. Average advertised asking rents nationwide grew to $1,739 in June, up a steady but unexceptional 0.6% year over year. Those yearly gains have been receding since March, when that figure…

Retail Real Estate Buyers Vie To Thaw ‘Frozen’ U.S. Sales Market

The U.S. retail market is currently on a long stretch of rock-solid performance at the property level. The national vacancy rate is at a healthy 4.1 percent, according to first-quarter 2024 research from CoStar Group. This comes one quarter after a stellar 4 percent vacancy rate at year-end 2023. What’s more is net store openings are on pace to be positive for the third consecutive year…

United State Office Sector Awaits Rate Relief on Heels of Positive CPI Report

Highlights: June’s Consumer Price Index signaled further disinflationary progress with the odds for a 25-bps September rate cut increasing to over 85%, according the CME FedWatch Tool. Shelter inflation which has been stubbornly sticky on the downside rose at its slowest monthly pace since August 2021. Interest rate cuts can’t come soon enough for the office sector…

GenAI powers new early warning alert as risks and uncertainty surround commercial real estate

Moody’s introduces capability to determine when breaking news may impact lender and investor portfolios What if news broke that a major retail or office tenant – one that occupied a massive amount of space across several buildings in your portfolio – suddenly shuttered all of its locations? After the initial shock, the next step would be to assess the impacts. Before, this was an…

Video: PwC Real Estate Deals Leader Tim Bodner Discusses US Deals 2024 Midyear Outlook

The latest episode of America’s Commercial Real Estate Show  provides an in-depth look at the current state and future outlook of the commercial real estate market. This episode features Tim Bodner, a partner at PWC and its Real Estate Deals Team Leder, who offers expert insights from the US Deals 2024 Midyear Report. Note that this discussion is national in scope…

Demand for Green Buildings Outpaces Supply

Energy efficiency continues to be on the mind for many, as air conditioners and operating costs rise simultaneously during ongoing summer heat waves. I’ve written before about the integration of emissions reductions law information into Moody’s CRE platform to help clients track the evolving regulatory landscape, various incentives and financing programs for energy…

The Fed: Recent Trends in Banks’ Commercial Real Estate Exposure

Due to societal and economic changes triggered by the COVID-19 pandemic, segments of the commercial real estate (CRE) sector have increasingly become the focus of policymakers and analysts concerned with financial stability. More specifically, the shift to work from home has challenged the office segment, while changes in retail trade—such as a ramp up in e-commerce…

Commercial real estate succession planning guide

It’s never too early for multifamily investors to start real estate succession planning. In fact, “you can’t do it early enough,” said David Diggs, Senior Regional Sales Manager at Chase. So whether you’re close to transferring your business to family or just want to be well-prepared to one day transition leadership of your family real estate business, it’s a good time to take steps…

Podcast: Investment Trends in Focus; Quarterly Roundtable Q3 2024

Our panel of experts, led by chief research officer, Ashley Lester, takes stock of global markets as we enter the back half of 2024. Ashley and team examine the short- and long-term issues affecting investors, including the ever changing geopolitical landscape, the continued impact of AI and the role of private markets in the carbon transition.

The Fed’s Beige Book: Economic Activity Mostly Unchanged

Economic activity across the Southeast was largely unchanged during late May and June compared to the previous six-week period, according to the Federal Reserve Bank of Atlanta’s new Beige Book of anecdotal reports from business contacts. Patterns at work for the past couple of months continued: Labor markets and wage pressures eased further, and worker availability…

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Top Stories
July 17, 2024

Video: PwC Real Estate Deals Leader Tim Bodner Discusses US Deals 2024 Midyear Outlook

The latest episode of America’s Commercial Real Estate Show  provides an in-depth look at the current state and future outlook of the commercial real estate market. This episode features Tim Bodner, a partner at PWC and its Real Estate Deals Team Leder, who offers expert insights from the US Deals 2024 Midyear Report. Note that this discussion is national in scope, not isolated to Miami or South Florida.

Key Insights from the Conversation:

Capital Markets and Distressed Sales
Tim Bodner highlights that despite initial concerns, the level of distress in the commercial real estate market has not reached the anticipated levels. Distressed sales activity stood at 3.9% in Q1 2024, up from around 2% in previous quarters. This increase is primarily attributed to a significant retail deal. In comparison, distressed sales during the peak of the financial crisis were about 20%. Bodner emphasizes that the current market is different, with creative solutions being employed to manage distress.

Loan Modifications and Extensions
The conversation reveals that a substantial portion of loan maturities in 2023 were extended to 2024, with a higher volume of loans maturing this year. Lenders and market participants are working together to navigate these challenges, aiming for refinancing in more favorable market conditions.

Private Capital’s Role
Private capital, particularly from insurance companies and alternative asset managers, is expected to play a significant role in real estate finance as traditional financial institutions pull back. Despite increased activity in the CMBS market, its proportion relative to the past decade remains small.

Future Market Expectations

Distress Levels and Market Response
Bodner anticipates that while distressed transactions will continue, especially in the office sector, they will not reach the levels seen during the financial crisis. Market participants are more prepared to manage and mitigate distress, focusing on creative solutions and long-term stability.

Investor Strategies
Investors are increasingly focused on operational efficiency and strategic positioning in response to higher rates, geopolitical uncertainties, and evolving market conditions. The emphasis is on having the right skills, technology, and organizational structure to thrive in this new environment.

Non-Traditional Real Estate Investments
The scope of investable real estate assets is broadening, with significant interest in alternative asset classes such as student housing, senior housing, data centers, and mixed-use developments. There is also a notable shift towards infrastructure investments, driven by government stimulus programs and the growing importance of resilient supply chains.

Impact of Political and Economic Factors

Elections and Policy Changes
The impact of elections on commercial real estate is a topic of interest. While elections typically introduce uncertainty, the primary concern is their effect on market confidence and the pace of capital deployment. Bodner notes that ongoing discussions about tax policy changes, such as limitations on 1031 exchanges, could have significant implications for the market.

Inflation and Affordability
Inflation is gradually decreasing, but affordability remains a critical issue. This challenge is expected to persist, influencing consumer behavior and investment strategies. Bodner points out that the market’s response to inflation and affordability issues will be crucial in shaping the future landscape of commercial real estate.

Opportunities Amid Challenges

Creative Financing and Strategic Acquisitions
In the face of market volatility, real estate professionals are getting more creative with financing solutions, including seller financing, joint ventures, and private placements. This creativity is essential for navigating the current environment and capitalizing on opportunities.

Long-Term Value in Office and Retail Sectors
Despite current challenges, there are opportunities for strategic investments in office and retail sectors. The potential for acquiring properties at significantly reduced prices presents a unique opportunity for investors willing to take a patient and strategic approach.

Conclusion

The mid-year 2024 outlook for commercial real estate is one of cautious optimism, with significant opportunities for those who can navigate the complexities of the market. The conversation with Tim Bodner underscores the importance of creativity, strategic thinking, and adaptability in leveraging the evolving landscape of commercial real estate.

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July 15, 2024

Miami Commercial Real Estate News July 10, 2024: Homestead 1200-Unit MXU Dev Site Trades for $65M; 2,200 Unit Dev Proposed for North Miami; More…

DR Horton drops $65M for 97 acres in Homestead

Homebuilding giant D.R. Horton dropped $65 million for 97 acres of Homestead farmland for its planned Sandero Landing community. Records show D.R. Horton bought the site at Southwest 328th Street and Southeast 6th Street from the Alger family, led by Richard Alger. The Algers are longtime Homestead farmers, and their Alger Farms specializes in growing…

D.R. Horton Buys Land For 1,200-Unit Project

D.R. Horton paid $65M to assemble 97 acres of agricultural land across 11 parcels in Homestead where it is planning 1,170 residential units and 216K SF of commercial space, according to records from property data platform Vizzda. D.R. Horton’s 97-acre plan in Homestead would create a village with a grocery store, fitness center and urgent care facility. John and Richard…

CMC Group Obtains $69.9M Loan for Refinancing of Coral Gables Mixed-Use Development

Locally based CMC Group has obtained a $69.9 million loan for the refinancing for 4000 Ponce, a mixed-use development located in Coral Gables, a western suburb of Miami. City National Bank of Florida provided the loan to CMC, whose affiliate Ugo Colombo developed the nine-story project in 2002. Paul Stasaitis, Paul Adams and Nicole Barba of JLL arranged the five-year…

Miami-Dade plans for future with 30-member Vision Council

County Commission Chairman Oliver G. Gilbert III wants to create the equivalent of a United Nations of Miami-Dade organizations – from labor, business, health, education, culture, recreation, government – to plot a positive course for the county’s next 30 years. Mr. Gilbert called for the creation of a 30X30 Vision Council before the Policy Council & Intergovernmental Affairs…

Miami-Dade Courthouse up for auction at $52 million plus

The old Dade County Courthouse at 73 W Flagler St., which is still in daily use by the county, is being put on the market. Minimum bid: $52.3 million. Not a bad profit for a building that cost $4 million when it opened in 1928. The historic, 28-story building is being sold “As Is,” according to a legal ad that appeared in Miami Today last week. It was added to the U.S. National Register…

Downtown Miami Courthouse For Sale, Bids Start At $52.3M

Downtown Miami’s Dade County Courthouse is being sold. Courthouse operations have been active in the building for nearly 100 years, but will soon move to a new building under construction across the street. Miami-Dade will be accepting bids for the original courthouse building, which are due September 4. The minimum bid is listed at $52.3m. Buyers will need to comply…

Review boards reject plans for tallest Wynwood residential tower

A plan to build the tallest residential tower in the Wynwood Arts District has been rejected by two City of Miami review groups. The site is at the northwest corner of North Miami Avenue and Northwest 21st Street. Wynwood Interest LLC owns 2110 N Miami Ave., 2118 N Miami Ave., 2134 N Miami Ave., 2135 NW Miami Court, 2129 NW Miami Court, and 2101 NW Miami Court.

Sears site beside Gables targeted for 1,050 residences in three buildings

A developer has plans to redevelop the Sears store property in Miami’s Coral Gate neighborhood, bringing new retail and affordable housing to a high-profile area. RK Associates #5 Inc LLC proposes three new eight-story mixed-use buildings offering 1,050 residential units and related amenities, paseos, courtyards, and parking for about 1,924 vehicles for property at 3655…

Whale of 39-story Park West residences planned

A prominent development firm is planning one whale of a project for Miami’s Park West neighborhood, with a giant whale sculpture crashing through glass and steel anchoring the new tower. Owner-developer Property Markets Group (PMG) has proposed a 39-story mixed-use building, West Eleventh Residences, containing 670 residential units, including micro-size units…

176-Unit Apartment Building Now Rising One Block Away From Brickell

A construction crane for the Gallery at Marti Park apartment building is now in place. The 12-story development is being built just a block away from Brickell. Groundbreaking for the project took place in January. Around half of the units will be normal market-rate apartments. The remainder of apartments will be targeted towards low-income seniors under the Rental….

Former Virgin Hotel Site In Brickell In Contract, Up To 300 Units Planned

The Brickell property where a Virgin Hotel was once planned is now in contract to another developer, according to The Real Deal. Prosper Group is said to be in contract on the property for $40M. Closing is expected in the first half of 2026. A condo-hotel is likely to be built. The developer will partner with another developer to build up to 300 units, with a vision to build…

Another one: PMG, partners launch short-term rental condo project in Overtown

The 22-story project at 105 Northwest Eleventh Terrace, called One West Twelve Residences, will include a ground-floor restaurant and lounge led by celebrity chef Marcus Samuelsson, Simkins said. Sales launched about a month ago, and the 372-unit development is more than 50 percent presold, a spokesperson said. It adds to an expanding pipeline of short-term rental-friendly…

First major revamp of Miami-Dade’s Better Bus Network coming

Miami-Dade’s bus network is expected to get its first major revamp Nov. 25 as the transit system tries to quell loud rider complaints on a handful of specific routes. Introduction of the Better Bus Network routes and schedules Nov. 13, 2023, was geared to provide faster and more-frequent trips on the most heavily traveled of the county’s 70 routes by spreading bus stops farther…

Site and Financing Secured for 77-Story ‘ORA by Casa Tua’ in Miami’s Brickell Financial District

Miami-based developer Fortune International Group has acquired a 46,373-square-foot site at 1210 Brickell Ave and secured a $36,080,000 pre-development loan for the ORA by Casa Tua project. The loan, provided by Amerant Bank, marks a significant step forward in development. Fortune International Group purchased the site from Miami-based Patagonian…

Developer Completes Acquisition of Site for 77-Story Brickell Tower Ora by Casa Tua

Fortune International Group has completed the acquisition of the site where it will build the 77-story Ora by Casa Tua. A pre-development loan has also been issued. The 46,373-square-foot site at 1210 Brickell Ave was acquired from Miami-based Patagonian Investment Internacional LLC. The developer can now further the development and ready the site for construction.

Developer proposes 2,200-unit multi-tower project in North Miami

Redwood Dev Co is proposing a massive mixed-use development in North Miami. The phased project calls for 2,193 residential units, 121,500 square feet of commercial space and more than 4,100 parking spaces across eight 18-story buildings, plans filed with the city show. Kobi Karp Architecture & Interior Design is designing the project, which is proposed for nearly 39 acres…

Nearly 2,200 Apartments Across 8 Towers Proposed At North Miami Park

The North Miami City Commission is considering a proposal to build 2,190 apartments as part of a redevelopment of Claude Pepper Park. The proposal, from Miami Beach-based Redwood Dev Co, includes eight buildings designed by Kobi Karp rising from 11 acres adjacent to the park. The project would include 121K SF of retail space and 4,114 parking spaces. Commissioners are…

Developer Could Demolish Harry Cain Building in Downtown Miami

Downtown Miami’s 154-unit Harry Cain building could be demolished, according to a Miami-Dade agenda item. Related Urban Development Group would be selected to demolish the building, if commissioners approve the item. The developer had been awarded a ground lease for the property in 2013, and competitively selected to redevelop the County property, the memo…

Codina JV strikes another Hialeah industrial deal with Mormon church, sells warehouse for $56M

Seven months after purchasing a Hialeah industrial portfolio from a Codina Partners-led joint venture, The Church of Jesus Christ of Latter-day Saints is hungry for more. An affiliate of Property Reserve, the Salt Lake City, Utah-based church’s real estate investment arm, paid $55.8 million for a recently completed 232,620-square-foot warehouse at 4141 West 91st Place within…

MGM Construction Group’s Florida Tower on Target for Fall Debut

With the pouring for levels 1 to 13 underway at the 25-story West Tower of Oasis Hallandale mixed-use luxury condominium project in Hallandale Beach, Fla., MGM Construction Group expects to top out the 250-unit building by late fall. It will be the first mixed-use development in Hallandale Beach, which is about 20 miles north of downtown Miami and near Aventura, Fla.

Demolition Now Underway At Site Where 41-Story Hub Miami Planned

Demolition has commenced at the site where the 41-story Hub Miami tower is planned. A 17-year-old partially built shell of a building is coming down to make way for the new Hub tower. The shell now being demolished was planned as an office tower called Logik, which halted construction around 2007. The new Hub Miami tower is planned to include 306 condos and 245k sf…

Foreclosure auction averted: R&B Realty avoids losing Gateway at Wynwood with bankruptcy filing

R&B Realty narrowly stalled a foreclosure auction for its fairly new mixed-use building in Miami’s Wynwood neighborhood. On Monday, two R&B entities that own Gateway at Wynwood at 2916 North Miami Avenue, filed for Chapter 11 in U.S. Bankruptcy Court in New York, court records show. The 14-story office and retail building, which R&B completed in 2022, was scheduled…

Photo: First Fully Formed Arch At Downtown Miami’s Signature Bridge

A photo shows the first fully formed arch at Downtown Miami’s Signature Bridge, which is under construction. The top of the arch was recently poured, with forms now removed to reveal the shape of the structure. As part of the project, six arches are being built as a design feature next to the overpasses passing through Miami’s urban core. The arches will range in height from 180 feet…

FAA Permits Filed for 848 Brickell, Requesting Approval for 764-Foot Tower

Key International and Sterling Bay have filed for FAA permits for 848 Brickell, a 51-story Class A office and retail tower in Miami’s Brickell neighborhood. Designed by Skidmore, Owings, & Merrill (SOM), the project’s permits were filed on June 27, 2024, and are currently under review, with the status showing “work in progress.” The structure is planned to reach 764 feet…

Planned Brickell Office Tower Submitted To FAA At 764 Feet

Plans have been filed with the Federal Aviation Administration for a commercial tower on Brickell Avenue. The filing was made on June 27. Multiple heights were submitted for the new tower, which is named 848 Brickell. The tallest proposed height filed is 764 feet above ground, or 775 feet above sea level. Plans for the new 51-story tower were originally submitted to Miami-Dade..

New Eight-Story Affordable Housing Project Planned at 13841 SW 252nd Street in Miami-Dade’s Princeton Community Urban Center

An Administrative Site Plan Review (ASPR) application was submitted on July 1 for Princeton Manor, an affordable housing development aimed at providing 132 new rental apartments. The project is planned for an eight-story high-rise building at 13841 Southwest 252nd Street within the Princeton Community Urban Center in Florida. Princeton Manor is being developed…

FAA Approves Permits for 57-Story ‘M-Tower’ at 56 SW 1st Street in Downtown Miami

The Federal Aviation Administration (FAA) has approved permits for M-Tower, a mixed-use development planned for downtown Miami. The permits allow for a structure to reach 605 feet above ground or 615 feet above mean sea level. These permits were approved on July 2, 2024, and will expire on January 1, 2026. M-Tower, developed by Lions Group NYC and Fortis Design + Build…

UHealth expansion? University of Miami scoops up Pinecrest Macy’s for $40M

The University of Miami scooped up the Macy’s furniture store in Pinecrest for $40 million, signifying a potential expansion of its medical center network. UM bought the one-story, 78,000-square-foot building at 13251 South Dixie Highway from New York-based Macy’s, according to records and real estate database Vizzda. Completed in 1972, the building is on a 4.6-acre site.

J.P. Morgan-Advised Investors Land $148M Miami Refi for Gio Midtown

Institutional investors advised by J.P. Morgan Asset Management have secured a $147.7 million five-year, fixed-rate loan from PGIM Real Estate to refinance Gio Midtown, a 32-story, 447-unit luxury mixed-use property in midtown Miami. PGIM Real Estate provided the loan through its core debt financing platform. Tom Goodsite, managing director, financing, at PGIM Real Estate…

Magellan lands $148M refi for Midtown Miami mixed-use tower

Magellan Development Group and its partners scored a $147.7 million refinancing for a 32-story mixed-use tower in Midtown Miami. PGIM Real Estate, the global asset management arm of Prudential, provided the fixed-rate loan for Gio Midtown at 3101 Northeast First Avenue, according to a press release. Chicago-based Magellan, Miami real estate investor…

Future of Downtown Miami; An Interview with Miami DDA

To materialize its vision of creating a world-class, inclusive, and safe city, Miami DDA leads a variety of public-private investment initiatives that will help build a more resilient and sustainable Downtown Miami, by: Improving and expanding the city’s infrastructure with additions such as the Signature Bridge that will help ease traffic bottlenecks around Downtown Miami…

Kimco Proposes 282-Unit Apartment Complex at 2609 N 26th Avenue in Hollywood

An affiliate of New York-based Kimco hopes to get the greenlight for a residential venture in the Oakwood Plaza redevelopment project in Hollywood. The complex, which would take shape on a vacant 2.42-acre plot, would measure eight stories above grade and offer 282 apartments. The South Florida Business Journal reports that homes would measure 448 to 1,350 square feet…

From events to warehouses: BBX, FRP will redevelop Davie’s Signature Grand

Signature Grand, a prominent venue in Davie that’s hosted weddings, galas, homecomings, politicians and political party events, will be replaced with an industrial park. BBX Logistics Properties and FRP Development bought the building at 6900 State Road 84 and an adjacent parking lot, with plans to redevelop the 11.3-acre site with a pair of warehouses spanning 182k sf…

Mixed-Use Project Proposal in Downtown Pompano Beach Submitted for Review

An application for a mixed-use project in Downtown Pompano, known as Patagonia, has been submitted for review by the city’s Development Review Committee on July 3. The project, proposed by the Pompano Beach Community Redevelopment Agency (CRA) in collaboration with developers Frank Gotsman of Hadar Homes and Invest Capital Group under the ICG CGP 58…

Fort Lauderdale’s DRC to Consider Plans For 7-Story Residential Development ‘New Hope II’

An application has been submitted to Fort Lauderdale’s Development Review Committee (DRC) for New Hope Rentals II, a 7-story residential development by LandAmerica Development Corporation under the New Hope Development Corp. The project, located on an 11,100-square-foot site at the northeast corner of NW 6th Street and NW 14th Avenue in Fort Lauderdale’s…

Mystery buyer acquires Coral Springs shopping center for $20M, amid flurry of retail sales

Palm Beach real estate investor Beverlee Raymond sold a Coral Springs shopping center for $20.4 million to a mystery buyer. An entity managed by Raymond, CEO of Palm Beach-based Extraordinary Charities, sold Plaza at Royal Palm at 10299 Royal Palm Boulevard to a Boca Raton-based entity whose authorized representative is Rocco Labella, a Hackensack, New Jersey-based…

Bridge sells office complex in Sunrise for $49M –– a 34% discount

Bridge Investment Group sold the Sawgrass Technology Park in Sunrise for $49 million, marking a 34 percent discount from its purchase price five years ago. North Miami-based IMC Equity Group and investor Alan Lipton bought the 515,000-square-foot office campus at 1601-1699 Northwest 136th Avenue from Salt Lake City, Utah-based Bridge, according to records and real estate…

Golf course redevelopment: 13th Floor plans 335 homes at Tamarac’s closed Woodlands Country Club

After a seven-year effort to redevelop Woodlands Country Club in Tamarac, 13th Floor Homes bought the closed golf course and plans to start construction this year. The firm paid $14 million for the roughly 270-acre golf course at 4600 Woodlands Boulevard from ClubLink US Corporation, a subsidiary of King City, Ontario-based TWC Enterprises, according to records and real…

S2 Development converting Dania Beach apartment complex into condos

S2 Development bought a recently completed Dania Beach apartment complex and plans to sell the units as condos. An affiliate of Aventura-based S2, led by principals J. Claudio Stivelman and Marc Schmulian, paid $36.7 million for the 99-year ground lease to Atlantica at Dania Beach, records and real estate database Vizzda show. The buyer of the 124-unit garden-style…

Milestone drops $112M for Delray Beach apartment complex, amid flurry of South Florida multifamily deals

Milestone Group bought a 488-unit apartment complex in Delray Beach for $111.6 million, amid a continuing flurry of South Florida multifamily investment sales. Milestone bought the Axis Delray Beach at 1495 Spring Harbor Drive from Bainbridge Companies, according to records and real estate database Vizzda. The deal breaks down to $228,770 per unit.

Jeff Greene hit with $4M-plus lawsuit tied to One West Palm project

Jeff Greene allegedly micro-managed work at his unfinished One West Palm project, creating significant delays and friction with a general contractor that is now seeking more than $4 million in damages, a recent lawsuit states. Kast Construction sued Greene’s entity, 1370 South Ocean, developing the $300 million mixed-use complex at 550 South Quadrille Boulevard in downtown…

It Is Not All About Insurance: Navigating Through Major Expenses for Multifamily Properties 

In the dynamic landscape of commercial real estate (CRE), multifamily properties stand as a cornerstone, drawing significant attention from investors for their potential for steady cash flows and appreciation. However, the profitability and valuation of these investments are intricately tied to the effective revenue growth and management of expense line items. The average operating…

Labor Market Continues to Gradually Moderate

Highlights: Despite the uptick in May’s job openings which increased to 8.14 million, the labor market continues to normalize with the ratio of job openings per unemployed, for example, nearly at parity with its 2019 average.ADP’s private sector employment increased by 150,000 jobs in June while pay gains for job-stayers rose by 4.9% YoY – the slowest pace of growth since…

Small Bay Market Emerges As Strong Industrial Performer

Over the past 4 years, 100 million square feet of small-bay industrial space has been added to the market, according to Newmark’s first-quarter U.S. Industrial Market Conditions and Trends report. The small bay segment is increasingly attractive to investors because it provides diversification in tenancy and therefore cash flow, as well as greater tenant management…

Video: The Demise of Office Real Estate Debunked with Madison Ventures Chief Strategy Officer Mitch Roschelle

The Discussion: The Resurgence of Office Spaces In a recent episode of America’s Commercial Real Estate Show the spotlight was on the hotly debated topic, “the demise of the office sector.” The show host, a seasoned commercial real estate broker, shared his platform with Mitch Roschelle, Chief Strategy Officer for Madison Ventures Plus and a regular on Fox Business News.

How real estate investors can prepare for an economic rebound

An economic rebound may not be on the immediate horizon, but multifamily investors can still make preparations for the future. Multifamily investors should look at economic indicators, such as housing markets, interest rates, and political and geopolitical dynamics—including the upcoming U.S. election—to get a clearer picture of the economy. Performing market research…

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July 10, 2024

Video: The Demise of Office Real Estate Debunked with Madison Ventures Chief Strategy Officer Mitch Roschelle

The Discussion: The Resurgence of Office Spaces

In a recent episode of America’s Commercial Real Estate Show the spotlight was on the hotly debated topic, “the demise of the office sector.” The show host, a seasoned commercial real estate broker, shared his platform with Mitch Roschelle, Chief Strategy Officer for Madison Ventures Plus and a regular on Fox Business News. The conversation delved deeply into the current challenges and future prospects of the office space market. The general focus of this discuss is office investment property throughout the United States. Such observations can apply less or even not at all to Miami and other South Florida markets.

The Debate: Is Office Space Really Dead?

The episode began by addressing the prevalent narrative that the demand for office spaces has plummeted beyond recovery in the wake of the COVID-19 pandemic. Michael Bull opened the discussion by acknowledging the difficulties the sector faces, including increased foreclosures and some owners returning properties to lenders. However, he countered the notion that office spaces are entirely obsolete, noting that while certain properties are struggling, others are performing well.

Expert Insights from Mitch Roschelle

Mitch Roschelle brought a contrarian perspective to the discussion. He challenged the doomsayers who predict the end of office spaces, arguing that the situation is more nuanced. Roschelle pointed out that the average lease term for office spaces in the U.S. ranges from five to ten years. Since the onset of the pandemic in March 2020, a significant number of leases have been renewed. If the office market were truly dead, such renewals would not be occurring.

Historical Context and Adaptation

Drawing a parallel to the retail sector, which was once predicted to be decimated by the rise of e-commerce, Roschelle emphasized that office spaces, like retail, will adapt and survive. He recalled past discussions on the show about how e-commerce would destroy physical retail, which did not happen. Instead, retail evolved and found new ways to thrive. Similarly, office spaces are in a phase of evolution rather than extinction.

The Benefits of Office Spaces

The discussion highlighted several crucial points about the enduring importance of office spaces:

1. Lease Renewals: The renewal of leases since 2020 indicates continued demand for office spaces despite the challenges.

2. Inefficient Hybrid Models: Many companies currently operate under inefficient hybrid work models, leading to underutilized office spaces on certain days. These models need refinement to ensure consistent use of office spaces throughout the week.

3. Economic and Productivity Advantages: Office environments are essential for fostering collaboration, building corporate culture, and enhancing productivity. Companies like JPMorgan Chase, under the leadership of Jamie Dimon, are pushing for employees to return to the office to leverage these benefits.

4. Historical Recovery Patterns: Historical patterns show that real estate markets, including office spaces, often recover robustly from downturns. The post-2009 housing market recovery serves as a prime example.

Strategic Investment Opportunities

The show host and Mitch Roschelle discussed the unique investment opportunities present in the current market. Office spaces are being sold at prices significantly below their replacement costs, creating attractive opportunities for investors. Bull shared examples of office buildings in prime locations being sold at remarkably low prices per square foot, suggesting that these properties could yield substantial returns in the future.

The Role of Private Equity

The discussion also touched on the potential role of private equity in the office space market. Roschelle highlighted that private equity firms, with their ability to raise substantial capital, are well-positioned to take advantage of the current market conditions. By acquiring office properties at discounted prices and managing them effectively, private equity firms can make significant gains as the market recovers.

The Future of Office Spaces

Both the show host and Roschelle are optimistic about the future of the office sector. They predict that the value of office properties will increase significantly over the next 60 months as companies adapt to new hybrid models, and demand for office space stabilizes. They believe that the current market conditions present a rare opportunity for investors to buy office properties at low prices and reap substantial rewards in the coming years.

Conclusion

The episode concluded with a call to action for those in the commercial real estate market. Bull and Roschelle encouraged investors to consider the long-term potential of office spaces and to seize the current market opportunities. They emphasized that while the sector faces challenges, it is far from dead and holds significant promise for the future.

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Office Property
July 8, 2024

Miami Commercial Real Estate News July 3, 2024: Once Planned MLS Site to be 1,219 Residences, Former Sears 1,050 Unit MXU; Multifamily Sales Heat Up; More…

Mas brothers site once touted for MLS stadium getting 1,219 residences

A large vacant property in Overtown that at one time was considered for a professional soccer stadium is now being developed into a major residential and mixed-use neighborhood. The sweeping project is a collaboration between 0101 Miami Properties LLC, led by brothers Jorge and Jose Mas, and 8th Street Connections Holdings LLC, an affiliate of Terra. The site comprises…

John Ruiz, Cigarette Racing buy Opa-locka warehouses, amid industrial sales uptick

John Ruiz and his boat manufacturing firm, Cigarette Racing, scooped up a pair of Opa-locka warehouses, amid a continued uptick of South Florida industrial investment sales. They purchased the adjacent buildings at 4355 Northwest 128th Street and 13041 Northwest 43rd Avenue for $16 million from an entity led by Skip Braver, according to records. Braver sold the Cigarette Racing…

Miami Mayor Francis Suarez says transportation efforts going nowhere

As Miami-Dade’s transportation planners were about to vote on a five-year improvement plan last week, the City of Miami’s representative, Mayor Francis Suarez, notable mostly for his absence, dropped a bombshell as he complained that the group is all talk but no action and at the same time called for more talk about transit ideas. “We talk a big game and a good game…”

Board OKs 60-story Clear Residences in downtown Miami

A tall and slender golden tower is planned for a tight site in downtown Miami. Owner-developer Blutrich Holdings Inc. plans to construct the 60-story mixed-use residential tower, to be called Clear Residences, at 130 SE First St. and 153 SE Second St. The nearly 690-foot-tall structure is to include 666,432 square feet of floor area, including 549 residential units, 3,622 square feet of ground…

Zerry Ihekwaba: City Manager plans Homestead as a space industry powerhouse

Since taking on the role as Homestead city manager, Zerry Ihekwaba has already rolled out initiatives for a better quality of life for residents with citywide clean-ups, and has in the works a spaceport and an entertainment hub.  Mr. Ihekwaba joined the City of Homestead from the City of Miami, where he served as assistant, deputy and interim city manager.

Excel Construction Delivers 266,000 SF Industrial Facility in Hialeah Gardens for World Electric Supply

Excel Construction has delivered a 266,000-square-foot industrial facility at 10701 N.W. 142nd St. in Hialeah Gardens, approximately 20 miles outside Miami. World Electric Supply will occupy the property, which features 253,390 square feet of warehouse and packaging space and 12,862 square feet of office space. The building is situated within Northwest Dade Logistics Center…

RK Associates Gets Approval for Mixed-Use Development at 3655 SW 22nd Street Shuttered Sears Site in Miami

A shuttered Sears in Miami could be replaced with a multi-family housing development. The project, led by Sunny Isles Beach-based RK Associates, would offer 1,050 housing units, with layout plans ranging from studio to three-bedroom units. Specifically, the Real Deal notes that the housing plans include 995 apartments and 55 rental townhomes. Of the 995 apartments…

Last Sears in Miami to be Mixed-Use Complex

It’s getting hard to keep track of the onslaught of projects that have been put forward under Florida’s Live Local Act. The latest involves a plan to redevelop the last Sears outlet in South Florida into a mixed-use development. RK Centers, a firm founded and led by Miami Heat minority owner Raanan Katz, is aiming to build three eight-story buildings encompassing 995 apartments and 55…

Terranova moves one step closer to acquiring Location Ventures’ former HQ

Stephen Bittel’s Terranova could soon own the former Coral Gables headquarters of Rishi Kapoor’s defunct Location Ventures. On June 17, U.S. District Judge Jacqueline Becerra approved a settlement agreement in Terranova’s favor, paving the way for a final foreclosure judgment tied to the office building at 299 Alhambra Circle. The settlement is between Bernice Lee…

MAS AJP, Flagler to Develop South Florida MOBs

MAS AJP and Flagler Healthcare Solutions, two major South Florida health-care real estate firms, have formed a development partnership. The duo, titled FLAGLER MAS AJP, will break ground this fall on three medical office properties, one each in the Westchester neighborhood of Miami, Port St. Lucie, Fla., and Boynton Beach, Fla. Two others will follow.

Rilea’s partner bows out of planned Rider at Wynwood project for $21M

Promanas Group officially exited Rilea Group’s planned Rider at Wynwood project, selling its stake for $21 million. An affiliate of Saline, Michigan-based Promanas sold the 0.6-acre development site at 94 and 100 Northeast 29th Street and 101 Northeast 28th Street to an affiliate of Miami-based Rilea, records show. Rilea financed the acquisition with an $11.5 million mortgage…

Major Acquisition Expands Developer’s Waterfront Footprint in North Bay Village

Continuum Company has expanded its presence in North Bay Village by acquiring Shuckers Waterfront Bar & Grill and Best Western On The Bay Inn & Marina (now known as North Bay Inn Miami) at 1819 and 1855 79th Street Causeway. This acquisition, supported by a $67.5 million loan from Longline Financial, extends Continuum’s waterfront footprint to 4.5 acres…

Shoma Bay Breaks Ground at 1850 79th Street Causeway in North Bay Village

Coral Gables-based Shoma Group has broken ground on Shoma Bay, a mixed-use tower in North Bay Village, located at 1850 79th Street Causeway. The 24-story development will feature 333 waterfront condos, a 35,037-square-foot Publix market, and 15,628 square feet of retail space. Shoma Group acquired the property for $15.78 million in 2021. North Bay Village is seeing an influx…

Miami Tower Agrees to Affordable Component

Miami-Dade County has cut a deal with the developer of a Brickell apartment tower to set aside 26 units as affordable workforce housing for lawyers working in the state attorney’s office. Chicago-based Focus is planning to build a 39-story apartment tower at the site of the former Starlite East Motel at 128 SW Seventh St. in Miami’s Brickell neighborhood. Demolition of the aging motel…

90-Room ‘Sanctuary Hotel’ Undergoes Construction at 1745 James Avenue in Miami Beach

Developer 745 James LLC has secured a $21.5 million construction loan for a boutique hotel in Miami-Dade County. Sanctuary Hotel would measure five stories above grade and offer 90 rooms, occupying the former site of Sanctuary South Beach Condo. 745 James LLC purchased the now-demolished condominium for $14.41 million in 2019, securing approval for the hotel a year…

Former NFL star Elvis Dumervil’s firm buys North Miami apartments

A firm led by Elvis Dumervil, a former Pro Bowl NFL player turned real estate developer, paid $11.35 million for the Caribbean Club Apartments in North Miami. Miare LLP, managed by Oleg Vorobyev in Sunny Isles Beach, sold the 62 apartments at 13200 N.E. Seventh Ave. to Prestige District LLC, managed by Dumervil of North Miami-based Prestige Estates. International Finance…

Michael Shvo cuts ties with Official at Raleigh Miami Beach

Developer Michael Shvo is cutting ties with Official, the boutique brokerage co-founded by Oren and Tal Alexander, in the wake of sexual assault and rape allegations leveled against the brothers, The Real Deal has learned. Shvo, who hired Official last year to lead sales and marketing of the Rosewood Residences at the Raleigh in Miami Beach, is bringing sales in-house, sources said.

Miami-Dade County adds 4 acres in Opa-locka to rapid transit zone

About four acres of land in Opa-locka are to be included in Miami-Dade County’s rapid transit zone, an area that grants additional development rights for transit-oriented developments. The Miami-Dade County Commission unanimously approved an ordinance that included 4.02 acres at approximately 13307 Alexandria Drive into the county’s RTZ during its July 2 meeting.

New Plans Filed for ‘the Residences at Palm Court,’ Located at 950 NW 95th Street in West Little River

The Related Group has new plans regarding two residential complexes in Miami-Dade’s West Little River Neighborhood. The original proposal, filed in 2023, involved demolishing Palm Court, an 88-unit complex, and renovating Palm Tower, a 103-unit development. Now, according to the South Florida Business Journal, a new zoning application calls…

Magellan lands $148M refi for Midtown Miami mixed-use tower

Magellan Development Group and its partners scored a $147.7 million refinancing for a 32-story mixed-use tower in Midtown Miami. PGIM Real Estate, the global asset management arm of Prudential, provided the fixed-rate loan for Gio Midtown at 3101 Northeast First Avenue, according to a press release. Chicago-based Magellan, Miami real estate investor…

Foundation Pour Completed For Brickell’s 67-Story Mercedes Benz Places Tower

A foundation pour for the 67-story Mercedes Benz Places tower has been completed, according to the developer’s social media account. Vertical construction is expected to begin in July. The pour took place over the weekend, with over 10,000 cubic yards of concrete trucked in. The development is one of the largest currently under construction in Florida, at over 2.5 million square…

New Renderings Of 856-Unit Residential Project Planned At Earlington Heights Metrorail Station

The developer planning a large residential complex at the Earlington Heights Metrorail station filed new renderings and plans last week. Developer Earlington Metro, LLC is requesting Miami-Dade Administrative Site Plan Review for the workforce multifamily development. Two 15-story towers are planned on property currently occupied by bus bays. The land is to be leased by…

Sustainable Wynwood/Overtown Mixed-Use Development Called SoWy Planned

A developer just announced it has secured a $76.81 million loan for a sustainable, mixed-use development in Overtown and Wynwood. JP Morgan Chase provided the loan. More Development is the developer. The company has offices within the development site. The development will be known as SoWy, and aims to stay faithful to the vibe of the neighborhood. SoWy will span…

Prosper in contract to buy dev sites in Brickell, North Bay Village for $70M

Prosper Group, a development firm led by Jay Roberts, is in contract to acquire two sites in Miami-Dade County where the company plans luxury condo towers, The Real Deal has learned. Prosper inked contracts for a Brickell development site at 1040 South Miami Avenue in Miami for $40 million, and the assemblage at 1681 and 1725 Kennedy Causeway in North Bay Village for $30.5M…

Z Capital sues Carillon condo association’s board members in latest chapter of eight-year legal saga

Z Capital Group sued condo association board members at the Carillon Miami Wellness Resort in Miami Beach, marking the latest chapter in South Florida’s drawn-out and most prominent condo-hotel dispute. The New York-based firm sued four past board members of the Central Tower association, as well as current board president Marvin Rosen and vice president Bruce Gorsky.

Owner of former Best Buy store in Pinecrest files for bankruptcy

The owner of a former Best Buy store in Pinecrest is seeking bankruptcy protection after losing more than $1 million in rental revenue when the big box retailer moved out last year. On June 20, Maria Investments, led by Azhar Said in Miami, filed a Chapter 11 petition in Miami’s U.S. Bankruptcy Court to avoid losing the 40,242-square-foot retail building at 11905 South Dixie Highway.

Judge tosses marina shakedown lawsuit against Alex Diaz de la Portilla

Alex Diaz de la Portilla can’t be held liable for allegedly shaking down a lobbyist and his client for a piece of a city of Miami marina deal. Miami-Dade Circuit Court Judge Mavel Ruiz on Thursday tossed a lawsuit filed last year by Manuel Prieguez, a lobbyist and ex-state legislator, against the former Miami city commissioner and two Diaz de la Portilla associates, Humberto Hernandez…

FBI raids Developer Sergio Pino’s home and office in connection with death threat against estranged wife

The FBI conducted raids of developer Sergio Pino’s waterfront Cocoplum estate and his Coral Gables office, as his two-year-old divorce case takes a dark turn. Federal agents in tactical gear descended on Pino’s home at 142 Isla Dorada Boulevard and his Century Homebuilders Group headquarters at 1805 Ponce de Leon on Monday night, the Miami Herald reported.

Arson, hit-and-run, fentanyl poisoning? About allegations against Sergio Pino

Prominent South Florida homebuilder Sergio Pino has been accused of poisoning his wife with fentanyl and bath salts, as the FBI investigates whether Pino had one of his part-time employees target his wife and her sister. Sergio Pino is founder and president of Century Homebuilders Group, which considers itself the largest Hispanic-owned homebuilder in the country…

Miami’s Waterfront Ferris Wheel Owes Over $1 Million in Delinquent Taxes

Afew short years after City of Miami commissioners approved a proposal to put a ferris wheel on public land at Bayside Marketplace, the operators of the ferris wheel have fallen into delinquency on over $1 million in taxes, WLRN has learned. The money owed would go directly towards funding the city and county governments. The operators of the ferris wheel, an Arizona-based…

Multifamily Investment Sales Heat Up in South Florida

Higher for longer interest rates, the withdrawal of traditional lenders and the waning of a two-year surge in rent growth don’t appear to be dampening interest in multifamily trades in South Florida. In fact, the arrival of summer has seen an uptick in multifamily investment sales activity in the market. A bevy of recent transactions in South Florida includes Chicago-based Mesirow’s…

South Florida’s Big, Empty Warehouses Drag Down Industrial Market

There are 48 industrial spaces larger than 100K SF available across South Florida, according to data provided… . The vacant spaces total more than 10M SF, and their failure to lease is starting to weigh on the market. The pandemic-era surge that defined South Florida’s industrial market has come crashing down, with the region experiencing a bit of a hangover as…

Revv Hollywood Tops Off Construction at 2233 Hollywood Boulevard

Revv Hollywood, an eight-story, 180-unit multifamily apartment building at 2233 Hollywood Boulevard, has officially topped off. Developed by The Calta Group and with Winmar Construction as the general contractor, the project is set to welcome residents next summer. The milestone was marked with a luncheon on June 20th for over 150 construction workers…

The West Tower at Oasis Hallandale Phase Three Advances in Vertical Construction

MGM Construction Group, a South Florida-based commercial and residential construction firm, has announced the concrete pouring for levels 1-13 of the West Tower at Oasis Hallandale. Located at 1000 East Hallandale Beach Boulevard, this mixed-use development is set to top out in late fall, featuring 500 residences, shops, restaurants, and offices on its 10-acre site. The West Tower…

BBX Logistics JV Eyes Davie Redevelopment

The Park at Davie will comprise two logistics buildings. Image courtesy of BBX Logistics Properties The joint venture between BBX Logistics Properties, a subsidiary of BBX Capital Inc., and FRP Development Corp. plans to develop The Park at Davie, a two-building, Class A, 182,000-square-foot logistics campus in Davie, Fla. The partnership purchased the Signature Grand…

Mormon church’s investment arm drops $133M for Plantation apartment building, as multifamily deals soar

The Church of Jesus Christ of Latter-day Saints’ commercial real estate investment arm paid $133 million for a 315-unit apartment building in Plantation. The purchase comes as South Florida multifamily sales are soaring, despite elevated interest rates and other economic headwinds. Property Reserve, which invests the church’s reserve funds, bought the eight-story…

Bridge sells office complex in Sunrise for $49M –– a 34% discount

Bridge Investment Group sold the Sawgrass Technology Park in Sunrise for $49 million, marking a 34 percent discount from its purchase price five years ago. North Miami-based IMC Equity Group and investor Alan Lipton bought the 515,000-square-foot office campus at 1601-1699 Northwest 136th Avenue from Salt Lake City, Utah-based Bridge, according to records and real estate…

IMC Equity Group Buys Sunrise Office Park at $25M Discount

A 56-acre office park in Sunrise, Fla., traded for about a third less than its previous sale price five years ago. IMC Equity Group paid $49 million for Sawgrass Technology Park at 1601 NW 136th Avenue, south of the Sawgrass Mills outlet mall, per property records. Israel Discount Bank of New York provided a $30.3 million loan. The Sawgrass campus features a 514,332-square-foot…

Developer Seeks Funding for 101-Unit ‘Pinnacle at Cypress’ at 6520 N Andrews Ave in Fort Lauderdale

Pinnacle Housing is hoping to get funding for a senior housing development in Broward County. The project, named Pinnacle at Cypress, would measure eight stories above grade and require 115,623 square feet of new construction. At full buildout, it would yield 101 one-bedroom apartments, averaging 680 square feet each. Additionally, plans call for 52 ground-floor parking…

Glass House Boca Raton Welcomes New Project Partners, Ground Breaking Slated for Q1 2025

Glass House Boca Raton, a 10-story residential development located in downtown Boca Raton at 280 East Palmetto Park Road, continues to expand its South Florida-based development team. The development has welcomed Anthony Perera, founder and managing partner of Exuma Capital Partners, as general partner, and Square Edge as the construction management partner.

Milestone drops $112M for Delray Beach apartment complex, amid flurry of South Florida multifamily deals

Milestone Group bought a 488-unit apartment complex in Delray Beach for $111.6 million, amid a continuing flurry of South Florida multifamily investment sales. Milestone bought the Axis Delray Beach at 1495 Spring Harbor Drive from Bainbridge Companies, according to records and real estate database Vizzda. The deal breaks down to $228,770 per unit. The complex…

Milestone Group Acquires South Florida Community

The Milestone Group has acquired the Axis Delray Beach Apartments, a 488-unit garden-style multifamily property in Delray Beach, Fla., from Bainbridge Cos. The purchase price could not immediately be learned. Axis Delray Beach features a unique mix of one-, two- and three-bedroom garden and townhome-style apartments in a lakefront, resort-style setting. In 2024, one-bedroom…

Barry Sternlicht’s Starwood sells Palm Beach County apartment complex for $108M, amid uptick in multifamily deals

Brookfield Properties bought a 444-unit apartment complex near West Palm Beach for $107.5 million, marking a continued uptick in South Florida multifamily deals, despite elevated interest rates. The purchase is part of New York-based Brookfield’s $1.6 billion purchase of a 7,300-unit portfolio of 23 properties from Miami Beach-based Starwood Capital Group, led by billionaire…

Biden Administration Doles Out $504M To 12 Regional Tech Hubs;  Including South Florida ClimateReady Tech Hub

Twelve tech hubs across the country are collectively getting a half-billion dollars in federal grants to expand research in artificial intelligence, semiconductor manufacturing and clean energy. The funding is among the first distributions of the CHIPS and Science Act of 2022, which earmarked $280B to spur regional economic development and reduce dependence on foreign…

Moody’s Q2 2024 CRE Preliminary Trend Announcement

Apartment Demand Slowly Catching Up, Office Stress Continued to Manifest, Retail Resilient Despite Bankruptcies, And Industrial Cools Down The commercial real estate (CRE) market remained in a holding pattern in Q2 as the industry awaits interest rate cuts across sectors. The macroeconomy is in a relatively healthy state, a benefit for CRE largely which has also shifted…

Industrial Prices Continue Upward Trend Nationally Despite Challenges

Industrial prices are nearing those of prices in the office market, driven by an industrial boom that began with COVID-19 and a market that has remained strong despite normalizing demand and muted transaction volume due to elevated interest rates. The average industrial sale price across the country was $142 per square foot in May, up 15.4% from last year and 71.2%…

PCE Completes Trifecta of Positive Inflation Reports for May

Friday’s Personal Consumption Expenditures (PCE) Price Index completed a trifecta of positive inflation reports for the month of May, reflecting a continuation of disinflationary progress that was also evident in May’s Consumer Price Index (CPI) and Producer Price Index (PPI) reports.Since 1960, the year-over-year (YoY) change in headline CPI was on average, 47 basis points…

‘Alarmist’ prediction of urban doom loop proves true across country

If you want an example of just how crazy office tower valuations have become, look no further than Burnett Plaza, the tallest building in bustling Fort Worth, Texas. The massive 40-story structure was purchased via foreclosure auction for $12.3 million in May. Three years ago, the same building was sold for about $137.5 million. In other words, this tower has lost more than 91% of its…

The industrial sector nationally comes back down to Earth

After several years of extraordinary growth, the industrial sector’s moonshot performance has started to come back down to Earth. Rent growth has cooled considerably in recent years, as illustrated in the accompanying chart. For example, commercial real estate effective rent growth for warehouse and distribution properties in 2022 increased by 21.7% annually, according to…

Paying the Piper: Mortgage maturities continue to pressure the office sector

Office landlords are facing plenty of problems these days, thanks to high interest rates, reduced demand and depreciating asset values. Now, they can add one more headache to the list: the volume of maturing commercial real estate loans continues to put pressure on property owners and brokers as lenders and investors seek to minimize their exposure to the office sector.

Breaking the Cycle: Innovations in Low Emissions Building Cooling Technology

As the early season heat waves in the US move south and west throughout the week, millions of people are under heat advisories. We’re entering the summer season, where beach trips and family road trips often have a backdrop of extreme heat, dangerous smoke or hurricane warnings. For many, summer is a time of soaring electricity bills due to surging air conditioning use.

Office Loan Maturity Monitor: Momentum May! Office Maturities are Ticking up

A staggering total of $2,247 million across 23 CMBS office loans reached fully extended maturity in May with the payoff rate recorded at 35.6%Properties with strong financials and stable occupancy pay off at a higher rate. Loan size continues to be a significant factor in whether or not a loan pays off$1,126 million of loans backed by regional malls reached fully extended maturity…

Video: Moody Analytics Senior Economist Ermengarde Jabir, PhD on Data Center Real Estate; Sector Trends, Performance, & Forecast

The Conversation: Exploring the Rapid Growth of Data Centers in Commercial Real Estate The latest episode of America’s Commercial Real Estate Show delved into an increasingly significant topic within the industry: data centers. The show featured Ermengarde Jabir, PhD., Senior Economist with Moody Analytics, as the guest expert. This episode marked the first time…

What will be the impact on office demand from WFH?

While decline in demand for office space isn’t a new trend, yet measuring the precise impact of this shift can be difficult. How many employees will return to the office? What days will they be in? Will work from home (WFH) persist? In this comprehensive analysis, economists review existing research on the persistence of WFH. Then, these insights are combined with four…

Empty Offices Risk Wiping Out $250 Billion in Commercial Property Value

Nearly one-quarter of all US office space will be vacant by 2026 as working from home persists, slicing commercial-property values by as much as $250 billion, according to a report from Moody’s. Office-vacancy rates are expected to rise to 24% from 19.8% in the first quarter of this year in the US, reducing revenue for office landlords by between $8 billion and $10 billion when combined…

Florida laws tied to HOAs, condo-hotels, insurance go into effect July 1

Half a dozen new Florida real estate-related laws will go into effect on Monday, following this year’s legislative session. Gov. Ron DeSantis signed bills into law that deal with long-controversial issues such as the governing structure at condo-hotels and the lack of oversight at residential communities governed by associations. Another new piece of legislation aims to help homebuilders…

Condo crisis worsens three years after deadly Surfside collapse

The tragedy was a huge wake up call for the condo community statewide — from legislators and code enforcement to homeowners, engineers, property managers and condo board members. Laws passed in 2022 and 2023 aim to ensure another collapse of that magnitude never happens again. The legislation requires milestone inspections for condo and co-op buildings…

Why The Push To Get Workers To The Office Is A Designer’s Dream

The quality of an office space has become a key front in the war against remote work, and tenants and landlords are spending tens of millions of dollars to win the battle with posh, irresistible workspaces. It costs an average of $400 per SF to build out the interiors at 830 Brickell, Miami’s highly anticipated office tower set to deliver next quarter, according to Brian Gale…

Saudi Developer Plans $300M Push Into U.S. Luxury Developments

A Saudi developer partnering with The Trump Organization on developments in the Middle East plans to invest $300M in luxury U.S. real estate projects by year’s end. Dar Global, the international arm of Saudi Arabia’s Dar Al Arkan Real Estate Development Co., announced it is seeking partnerships to build condos in New York, Miami, Los Angeles and other key U.S. markets.

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July 3, 2024

Video: Moody Analytics Senior Economist Ermengarde Jabir, PhD on Data Center Real Estate; Sector Trends, Performance, & Forecast

The Conversation: Exploring the Rapid Growth of Data Centers in Commercial Real Estate

The latest episode of America’s Commercial Real Estate Show delved into an increasingly significant topic within the industry: data centers. The show featured Ermengarde Jabir, PhD., Senior Economist with Moody Analytics, as the guest expert. This episode marked the first time this show has explored data centers, reflecting their burgeoning importance in the commercial real estate sector. Dr. Jabir mentions Alan Turing early in the show; love that. This is an interesting interview.

Understanding the Data Center Boom

The conversation began with a discussion about the size and growth of the data center sector. Historically, data centers were considered a niche market requiring specialized knowledge to develop and operate. However, the sector has seen explosive growth in recent years, driven largely by the expansion of cloud computing and the advent of generative AI (gen AI). This growth is not only evident in the increased demand for data centers but also in the technological advancements and infrastructure developments required to support them.

The Need for Power and Resources

One of the key challenges discussed was the immense power and cooling requirements of data centers. Unlike traditional commercial real estate, data centers are often measured in terms of power capacity rather than square footage. This shift underscores the importance of access to reliable power sources and advanced cooling technologies. The conversation highlighted the trend of data centers seeking alternative power sources, such as solar and nuclear power, to meet their growing energy needs. Additionally, the move towards liquid cooling technologies represents a significant advancement aimed at reducing operating costs and improving efficiency.

Q: What is a data center’s favorite song?
A: I’ve Got The Power

Dr. Jabir notes that the gen AI operations are centered around hyperscale which can range from 2 to 100 megawatts of power capacity. With a single megawatt equivalent to the energy use of 750 to 1000 homes, the upper end of this calculation is the equivalent of the power capacity of as many as 100,000 homes. Taken further, with the average home tending to house 2.5 people, this is equivalent to the residential power consumption of a quarter million people. Bigly power.

Cap Rate Trends and Investment Value

Cap rates for data centers have remained competitive, comparable to those of industrial properties and even multifamily sectors. Despite rising interest rates, data centers have maintained and even appreciated in value, demonstrating their resilience and attractiveness to investors. The cost of building and equipping data centers is substantial, leading to a reliance on long-term leases to ensure stability and return on investment.

Location, Location, Location

The importance of location in the development of data centers cannot be overstated. While proximity to major business centers remains relevant, the need for vast amounts of power and cooling resources is driving data centers to more remote locations. Areas like Northern Virginia, also known as “Data Center Alley,” have become global hubs for data centers due to their advanced infrastructure and availability of power. Interestingly, regions with cooler climates, such as Scandinavia, are also becoming popular due to their natural cooling advantages.

The Future of Data Centers

Looking forward, the demand for data centers shows no signs of slowing. The conversation emphasized that while exponential growth may eventually plateau, the sector is still in a phase of rapid expansion. The continuous advancements in AI and cloud computing will likely keep driving the need for more data centers, pushing the industry to innovate and adapt to new challenges.

Conclusion

The discussion with Dr. Jabir provided a comprehensive overview of the data center sector, highlighting its growth, challenges, and future prospects. For anyone involved in commercial real estate, understanding the dynamics of data centers is becoming increasingly crucial as they continue to shape the landscape of the industry.

This detailed exploration into the world of data centers underscores their growing importance and the factors driving their expansion. As the sector continues to evolve, staying informed about these trends will be essential for anyone involved in commercial real estate.

A Florida Related Personal Note on the Topic

Notably, Hawkins Commercial Realty was involved in the past in working to secure a site for a cryptocurrency mining group with a need for several megawatts of power. In that process, we came to realize just how much power that was, and then further that there appeared to be only a couple of very specific locations in the entire state of Florida that had the power supply infrastructure to support this. That was a couple of years ago, but I doubt that situation has changed dramatically, if at all, since. After all, Florida has its hands full accommodating all the people moving into it from other states!

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June 27, 2024
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